IMTS Retail (Marketing research)

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IMTS (ISO 9001-2008 Internationally Certified) MARKETING RESEARCH

MARKETING RESEARCH

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MARKETING RESEARCH CONTENTS:

UNIT - I

1-33

Meaning of marketing research – Nature and scope – importance – market research vs marketing research – role of marketing research – relationship of marketing research with other disciplines – limitations of marketing research – marketing research seenario in Indian corporate sector.

UNIT – II

34-116

Marketing research methodology – process of marketing research – research design : exploratory, descriptive and experimental. Data design : collection of primary data – methods – select secondary data sources – sampling design : methods – probability and non – probability sampling methods.

UNIT – III

117-148

Product Research : New product research – product life cycle research – product – mix research – packaing and branding policies. Motivation research: Nature – scope process techniques and limitations.

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UNIT - IV

149-185

Advertising research : Meaning – Nature – scope – Product appeal research – pretesting and post testing of advertisement – copy. Sales control research : Sales forecasting – methods of sales forecasting – sales analysis – sales potential – methods of sales control research.

UNIT - V

186-216

Marketing research report – Preparation of written report – format – essentials of a good marketing research report – future of marketing research report – future of marketing research – marketing research agencies – use of computers in marketing research.

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UNIT-I MARKETING RESEARCH—AN OVERVIEW INTRODUCTION The most vital function of management in an organisation is to minimise risk and uncertainty through systematic decision-making. Better decisions result from the effective and timely utilisation of right information about the consumers, dealers, competitors and others. Thus, management can be regarded as a game of handling information. Effective manager is one who handles various bits of the information in an objective and systematic manner. If a manager fails to handle information effectively he is unable to make the required decision and the result is indecision, i.e., mismanagement.

Marketing as a functional area of management is becoming increasingly important as compared to other fields, viz., production, finance, personnel and research & development. The increasing significance of marketing is the major reason that marketing information has gained the present pivotal place of importance. All decisions in modern business organisations revolve around the marketing information.

In modern business organisations, finance, personnel, production and research & development may be the door to success but marketing is the key which turns the lock. Consider any business decision, we find that the critical input needed for this purpose is the marketing information. This information can be collected and utilised using marketing research techniques.

The present chapter discusses various aspects of marketing research, viz., conceptual framework, historical development, nature, scope, uses and limitations, role, career opportunities, market us. marketing research, and relationship of MR with other disciplines.

Conceptual Framework Several definitions of marketing research have been advanced by academicians and experts. We have taken a few important definitions for discussion which in turn have helped us in developing a more comprehensive and exhaustive definition of marketing research.

American Marketing Association (AMA) defines marketing research as a systematic gathering, recording and analysing of data about problems relating to marketing of goods and services.' This definition directly starts with the data gathering activity but makes no mention about the pre-research analysis which is required to be conducted. It fails to explain that what data are required to be gathered,

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processed and analysed. Secondly, this definition ignores to make a mention that the data must be collected, recorded and analysed accurately and objectively.

Generally in India, accuracy and reliability is lacking in most marketing research investigations.

Let us take the example of advertising media like newspapers, TV, etc., giving advertisements. For example, of the biggest manufacturer of a product, the detergent which washes the whitest, the product with lowest price, the product is available in all general stores and so on. These tall claims generally paint a misleading picture of the product in comparison to various competing brands. Often, such advertisement claims are not supported by appropriate data Thirdly, this definition does not mention any word on identification and formulation of the problem and setting its objectives and methodology. Without a clear methodology and objectives (research design), the researcher cannot adopt a particular track for conducting research. In the absence of specific objectives and methodology, the researcher may manipulate the data and research results as per his or sponsoring agencys' needs. Also identification and formulation of the problem itself may create a host of problems to the researchers. Despite these strong limitations, the definition has two important positive aspects : (i) it is quite broad and also includes the research problems encountered by non-profit organisations in marketing of goods and services; (ii) it explicitly recognises the systematic nature of the research process, that is, the data should be processed in an orderly manner.

Zaltman and Burger (1975) define marketing research as the field which involves the diagnosis of information needs and the selection of relevant interrelated variables about which valid and reliable information is gathered, recorded and analysed. In this definition, although an attempt is made to remove some of the limitations of the earlier definition, yet it does not say anything on identification of problem, its formulation and objective setting.

The Priority Sectors We can put forward the following definition for marketing research, in a more comprehensive and exhaustive manner. Marketing research is a systematic and objective process of identifying and formulating the marketing problems, setting research objectives and methods for collecting, editing, coding, tabulating, evaluating, analysing, interpreting and presenting data in order to find Justified solutions for these problems. This definition is more comprehensive and exhaustive because it clearly mentions the need of problem identification, formulation, objective setting, research design (methodology), and all the steps required in data processing. It also includes the data presentation (research report preparation) without which a research project is a futile exercise. It also clearly mentions that marketing research is an attempt to find justified solutions because exact and 100 per cent correct solutions are hardly available due to descriptive nature of marketing problems.

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Historical Development Probably, the marketing research existed ever since the man on this earth first started exchanging the merchandise. Although at that time MR was in a very crude form. Evidently, the marketing research was first used in the United States in early nineteenth century (around 1820). First time it was used by newspapers to predict election results. Thereafter, the U.S. agricultural machinery manufacturers used MR for estimating the potential demand for their products by collecting and using certain information.

During 1907 to 1912, some quasi-marketing research firms came into existence. Bureau of Business Research was established by Harvard Business School followed by North-Western School of Commerce in 1918. During that period, a few publishing companies conducted business researches on their staff. It was around this period (1918) that some books dealing with marketing research (MR) were also published in the United States. Up to 1920, a little data was available for marketing researchers except governmental lists on population, agriculture and manufacturers. In 1929, the first census of population was undertaken which is a forerunner of today's census. In 1937, American Marketing Association sponsored a publication entitled The Techniques of Marketing Research.

In India also the history of MR has a hazy past. If we read the Indian religious epics, we find a mention of exchange of commodities, and information relating to such exchanges. The exchange processes were very common in various civilisations like Indus Valley, Mohanjo-daro and Harappa. But there is no separate record available on techniques and processes of marketing research of those periods. Later on Indian merchants, Muslim and British empires used MR in India but again no systematic record is available about its techniques and process. Though various firms in India have started employing marketing research techniques to a certain extent yet, not much literature on concepts and techniques of MR has been generated till date. Even today hardly any worth mentioning Indian book or journal is available on MR.

There is a need to work in a systematic and coherent manner on the field of MR so that continuity in this field can be established. At present, MR as a subject is being taught to under-graduate and postgraduate students of marketing management in various colleges, institutes and universities. Many firms both in private and public sector have started realising the importance of MR. Some firms have started employing MR officials (consultants) for conducting research on marketing problems. Several firms like TISCO, TELCO, Hindustan Lever, DCM, WIMCO, Escorts, Glaxo, Pfizer etc. in the private sector and BHEL, OIL, STC, MMTC, SAIL, Coal India, etc., in the public sector, have started conducting MR through their own staff. They are also sponsoring research projects to MR agencies. Several agencies have come

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up to undertake MR assignments. Many companies have started taking students from various colleges, institutes and universities for on-the-job training. These companies assign specific marketing problems to these students and later they complete the research and submit the report within a stipulated time period.

This shows that presently, MR policies and practices are being formulated and utilised by various business organisations in India.

NATURE OF MARKETING RESEARCH The nature of MR can better be understood if we explain it from seven points of view, viz. (i) as an economic resource ; (ii) as a system of authority ; (iii) as an activity of marketing management ; (iv) as a. team effort ; (v) as an art or science ; (iv) as a profession ; and (vii) as an interdisciplinary system. Let us discuss each of these points to illustrate the nature of marketing research.

1. MR—As an Economic Resource Basically, there are five factors of production, viz., land, labour, capital, entrepreneurship and management. In small organisations where various functional departments of management are not identified, all the managerial functions are performed by the entrepreneur himself. But as the organisation balloons to gigantic proportions, the entrepreneur alone cannot perform all the managerial functions. For this, he has to employ people who are formally trained in various functional areas of management.

Marketing department is to be established and a section of marketing research is to be set up to keep abreast of environmental changes. Trained marketing research executives can handle the information on dynamic environments and make the right information available to the management to facilitate decisionmaking.

Management information systems (MIS) have emerged as a fifth critical input adding to four M's of management (viz., men, money, machines, and materials). Marketing information systems have attained a greater significance in modern business organisations as a function of marketing. This has attained a vital role. It is rightly said to emphasise the increasing significance of marketing, "Production is a door to success but marketing is the key which turns the lock". Peter Drucker says, "Business is the creation of customers." So to manage a business well means to manage its marketing function effectively.

For making marketing management effective, we have to gather and analyse information on environmental forces, viz., customers, competitors, suppliers, distributors, etc. This information on environments can be made available to the organisation through a sound marketing information system.

Hence, the entrepreneur has to develop and improve marketing research section of his organisation to facilitate decision-making process. With the help of proper information, he can coordinate the activities of

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marketing department with other functional departments and finally, that of organisation as a whole. Thus other production factors being comparatively inert, MR is the most active and critical managerial resource.

SELF – EVALUATION QUESTIONS :

1. ______________ as a functional area of management.

2. ______________ have emerged as a fifth critical input adding to four M’s of management.

3.

___________ is a systematic and objective process of solving marketing problem.

Answer : 1. Marketing.

2. Management information system.

3. Marketing research.

2. MR—As a System of Authority A system is an assemblage of interacting and interrelated elements so as to form a complex whole to accomplish certain common objectives. And the authority is a legal right to command others to act or not to act in a prescribed manner.

MR is also a system having activities such a collecting, recording, tabulating, analysing, and interpreting the data. Each of these activities is performed by some specialist. Thus he possesses an authority to guide or direct workers (investigators) under his command and supervision. In turn, each of these experts is being supervised or commanded by middle marketing management people who in turn are accountable to the top management of the company as a whole. Thus, marketing research functions as a system of authority in an organisation.

3. MR—As a Function of Marketing Management

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As a field of study, essential activities of marketing include selling buying, transporting, storing, grading, standardising, risk taking, financing and Information gathering. Here, the final function of marketing is information handling which means marketing research.

Marketing management functions viz., planning, implementation, and

control, relating to

marketing-mix are also performed in an effective manner only when information on marketing-mix elements (product, price, place and promotion) and environmental forces (customers' needs and activities, markets' structures and reactions, competitors' strategies, dealers' demands, suppliers' policies, etc.) are made available to marketing executives operating at various levels of management. Therefore, marketing research is a well recognised and very important function of marketing management.

Interactions of various environmental forces about which in formation is needed is shown diagrammtically in Figure.

4. MR—As a Teamwork or Group Effort MR is performed by a group or team of executives carrying out different functional activities. An integrated effort is needed from all the

Figure : Interactive Environmental Forces MR executives who are doing different jobs. For example, the data analyst must know what objectives (to be accomplished) are set by the planning executives and what type of data can be retrieved from the data storage. The data processor and data-base operator must know that what types of data are there in the files or computer memory and how the particular data can be retrieved at the right time. Unless there is coordination among various executives of MR, it is difficult to carry it out effectively. Therefore, MR executives function as a team or group rather than as individuals so that the synergistic (Synergy: 2+2=5 effect) advantages can accrue to the firm.

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5. MR—As an Art or a Science Art is a style of performing a particular activity. It does not have its own techniques and depends for this upon other disciplines. Techniques for the management are developed by the behavioural scientists, viz., psychologists, sociologists, mathematicians, economists, etc. Each manager's ability in solving a particular problem facing him depends upon how well he utilizes the available scientific techniques. As different individuals have different styles of making and implementing decisions, the art of performing various functions varies from individual to individual. Although management in general is regarded as an art by most of the experts which is evident from its definition "Management is an art of getting things done through others" yet, being designated as an art does not mean a discipline cannot conduct research. It is the procedure used that determines what is research, not the subject matter being studied. Whether the study deals with a mathematical theorem (science) or consumer buying behaviour (art), if appropriate investigative procedures are followed, legitimate research occurs. Yet, marketing research can be called at least an inexact science because it uses scientific approach in solving a problem which can be seen from its definition given earlier in this chapter. The following discussion tries to prove marketing research as a scientific discipline.

Science is a systematic body of knowledge pertaining to an area of study and contains some general truth explaining the past events or phenomena. Science is also defined as a discipline which creates its own tools and techniques completely from within. It uses proper research techniques for the purpose of finding general patterns of fact or reality.

Science starts by establishing facts and seeks to explain them. Established facts are empirical data obtained with the aid of theories and in turn help clarify theories. We use theories of buyer behaviour to help us learn more about how buyers respond to the point-of-purchase promotional techniques.

Second characteristic of science is to collect information far beyond the existing facts. For example, we carry out rigorous experiments to determine the best communication approach for establishing the desired attitudes among consumers, e.g., producing favourable image for our brand of the product. Third, science is analytical in nature. For example, a market analyst tries to divide the buying decision process into its various components to determine the mechanism which accounts for the way the process functions. The analyst examines the interrelatignships among the component parts of the buyer decision process (e.g., interest and evaluation in a decision process). Fourth, science emphasises the specialised aspects of knowledge. For example, research on pricing may need services of economists. Fifth, science tries to achieve accurate and precise results by reducing the errors to a large extent. For example, while segmenting a market, we clearly and precisely mention the criterion (e.g., age, sex, income, occupation, life style, etc.) used for segmentation. Sixth, science is communicable and verifiable. We can

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communicate : what objectives are to be accomplished, what methodology to be used, what statistical techniques would be used to analyse the data, what will be the conclusions of research, etc. All these communications are verifiable with the help of data supporting them.

Seventh, science plans its activities before performing them. It has certain legal and systematic methodology for carrying out these activities. Eighth, science deals with projects on which no secondary data is available. These studies are exploratory in nature. Ninth, there is a mode available to predict the data collected in the science. Thus, the science is an open discipline which hides nothing and brings everything to the surface. These are a few major characteristics of science as a discipline.

Scientific method is a set of prescribed procedures for establishing and connecting general laws about events and for predicting events yet, unknown. For applying scientific method to the research problems, we ask well formulated and likely fruitful questions from the respondents. We devise the hypothesis to be tested during the research. We set the objectives and underlying assumptions and draw logical consequences of these assumptions. We collect data and test the technique for relevance and reliability. We also execute the tests and interpret their results. Then evaluation of the truth, claims of the assumptions and the fidelity of the hypotheses is conducted. Also. we determine the domains in which the assumptions and the techniques hold and state the new problems raised by the research. By taking the above-mentioned steps, we use the scientific method for our research problems.

We may apply the scientific method for solving our marketing research problems. Because we need more accuracy and reliability in the solutions to these problems in view of the intense competitive situations prevailing in the business world. We may define scientific marketing research as an effort to extend certified knowledge by developing concepts and testing hypotheses,! and gathering and analysing the meaningful data, and critically evaluating the original concepts and premises. In conducting scientific research in marketing area, we first of all see whether some secondary data are available from the researches which might have been conducted in the past. Then, we define the problem and specifically mention the objectives and hypotheses. We acquire the meaningful data on the problem through various modes, like mailed questionnaire, personal interview, etc. We organise (edit, code, tabulate) the data and analyse these with the help of statistical tools. Thereafter, we carry out an evaluation of the results.

It is evident from the above discussion that marketing research can use the scientific method to solve its problems. Thus, we can safely conclude that marketing research is a science (though not| perfect). It may be designated as an imperfect science like other social sciences.

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6. MR—As a Profession A profession refers to any occupation by which a person earns his livelihood. A profession is an occupation for which specialised skills and training are required and the use of these skills is not meant for self-satisfaction but these are used for the larger interests of the society. The success of these skills is measured not in terms of money alone. Thus all professions are occupations in the sense that they provide the means of livelihood. However, all occupations are not professions because some of them lack certain characteristics of being a profession.

Some experts studied the problems of professionalisation of management and evolved certain criteria, viz., (i) knowledge, (ii) competent application, (iii) social responsibility, (iv) self-control, and (v) community action for evaluating management as a profession. McFarland has indentified the following characteristics of management as a profession, viz., (i) existence of knowledge, (ii) acquiring knowledge, (iii) existence of representative body, (iv) ethical standards, and (v) reasonable remuneration.

In the light of the above points we may examine marketing research as a profession. In marketing research, knowledge of various techniques, viz., gathering, analysing and interpreting of data exists; an individual can acquire this knowledge for entering into this profession; representative bodies of marketing research exist, researchers have to adhere to certain code of conduct or ethics; and for performing MR studies, the researcher gets reasonable remuneration or compensation. As it meets all the above requirements, so marketing research can be treated a profession. Although in India MR as a profession has not got that good recognition as other professions like medicine, engineering, law, etc. Yet, attempts by various agencies are on to attain a stage of widespread recognition for MR as a profession.

In India, a number of research organisations in the field of marketing have emerged. These bodies are carrying out their research jobs very effectively. They are rendering services to various business organisations by making the needed information available to the latter.

7. MR—As an Inter-disciplinary Process Research is conducted in all the disciplines of physical and social sciences in almost the similar manner as in the field of marketing. We employ the similar research processes with almost common research activities (viz., collecting, tabulating, analysing, and interpreting data) for solving various problems in all other disciplines (viz., economics, sociology, psychology, physics, chemistry, etc.), on the one hand, and marketing on the other. Each discipline draws certain data or research findings from other disciplines.

Marketing researcher draws a host of data from other disciplines for solving marketing problems. For

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example, economic data has a great bearing on making a demand forecast of certain industry or business organisation. Also psychological and sociological data have a variety of applications for interpreting consumer behaviour.

We draw on various techniques developed by physical sciences, biosciences, and other disciplines. Thus, MR is using an inter-disciplinary approach making its functioning more effective.

SCOPE OF MARKETING RESEARCH A wide range of research activities are covered by the marketing research. For our convenience, we can put these activities into seven categories, viz., (i) product and service research, (ii) market research, (iii) promotion research, (iu) distribution research, (v) pricing research, (vi) corporate responsibility research, and (vii) miscellaneous research. Most of these research activities are shown in Table also illustrates the comparative picture of the companies conducting research in the United States and India. Table gives a summarised version of major activities encompassed within the marketing research. Each of the above mentioned categories is explained in Table.

Typical Applications of Marketing Research S.No.

Type of Research

Research Activities Covered

1.

Research on Markets

(a) Analysing market potentials for existing products and estimating demand for new products. (b) Sales forecasting (c) Characteristics of product markets. (d) Analysing sales potentials (e) Studying trends in markets.

2.

Research on Products

(a) Customer acceptance of proposed new products. and Services (b) Comparative studies of competitive products. (c) Determining new uses of present products. (d) Market testing of proposed products. (e)

Studying customer dissatisfaction with products.

(f)

Product-line research.

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3.

4.

5.

Research on Promotion

Research on Distribution

Research on Pricing

11 (g)

Packaging and design research.

(a)

Evaluating advertising effectiveness.

(b)

Analysing advertising and selling practices.

(c)

Selecting advertising media.

(d)

Motivational studies.

(e)

Establishing sales territories.

(f)

Evaluating present and proposed sales methods.

(g)

Studying competitive pricing.

(h)

Analysing salesmen's effectiveness

(i)

Establishing sales quotas.

(a)

Location and design of distribution centres.

(b)

Handling and packing of merchandise.

(c)

Cost analysis of transportation methods.

(d)

Dealer supply and storage requirements.

(a)

Demand elasticities.

(h)

Perceived prices.

(c)

Cost analysis.

(d)

Margin analysis.

1. Product and Service Research Several research projects may be included in this category as follows: 1. Research on competitiveness of the company's products in the industry. For example, a study on the market share controlled by M/s Hindustan Lever Ltd, in toilet soap business vis-a-vis other competitors like Godrej, Reckit Coleman, Proctor & Gamble etc.

2. Research on economic aspects including research projects on economic trends in industry sales and its relationship with company sales. For example, a study of sales trends of toilet soaps by M/s Hindustan Lever Ltd., as compared to toilet soap industry sales trends. This helps in forecasting the sales.

3. Research on consumer acceptance of company's products and services as compared to similar

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products of competitors. For example, studying the market acceptance of personal computers manufactured by HCL as compared to other competitors.

For example, how well consumers like and accept vegetable ghee brands packed in tin as compared to plastic packs (Acceptance of Rath and Dalda when sold in different packages designed by manufactures M/s DCM Ltd., and M/s Hindustam Lever Ltd, respectively.)

4. Research on present and potential customers of company’s products and services. Sales increase when advertising is done to attract customers on added qualities of the product. For example, to study whether the sales of vegetable refined oil is increasing tremendously because people are getting more and more aware of [he harmful effects caused by vegetable ghee.

5. Research on customer images, attitudes, wants, needs. values, motives, desires, usages, and similar other behavioural aspects useful in marketing. For example, a study on consumer attitudes regarding the quality of Colgate toothpaste as compared with other brands of the toothpastes like Pepsodent, Prudent, Cibaca, Forhans etc.

6. Research on causes and extent of customer dissatisfaction with company's products, sales of which are speedily declining. For example, a study on declining sales of loose material products as compared with packaged ones like salt, flour, sugar, etc.

7. Market testing of proposed products of a company. For example, a study on the market acceptance of a newly launched glycerine toilet soap, viz., "Hirnani", to know its marketability as compared to established brands like Pears.

2. Market Research This category includes study of market(s) with regard to certain products of a company. The market research involves analysis of market potentials for existing products and estimating demand for new products, sales forecasting, characteristics of product markets, analysis of sales potentials ; and studies on market trends. For example, M/s Mahindra and Mahindra Ltd., jeep manufacturers, want to know the market potential for their Jeeps in various markets vis-a-vis competitors' products potential. A distinction between market research and marketing research is brought about later in this chapter.

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SELF – EVALUATION QUESTIONS :

4. Business people who operate is ____________ also require marketing research.

5. List two organization of MR Department. ________, _________.

6. Career opportunities for men and women is marketing research have _________________.

Answer : 4. Rural market.

5. Product, Function.

6. Increased.

3. Research on Promotion Policies This includes marketing studies conducted to know past trends, present performance, and future plans in connection with the promotional policies of the company vis-a-vis its competitors. The research on promotional policies includes measuring of advertising effectiveness; analysing advertising and selling practices; selection of advertising media; designing advertising copy and testing that (pre-tests and posttests of copy); motivational studies of behavioural aspects in relation to purchase of products; establishing sales territories; evaluating present and proposed sales methods; evaluating promotional tools, viz., premiums, contests, price-offs, samples, demonstration, exhibition, trade shows, etc.; studying competitive pricing; analysing salesmen's effectiveness; and establishing sales quotas. Research on promotion is gaining increasingly greater importance owing to surmounting expenditures on promotion mix elements, viz., advertising, publicity, personal selling, and sales promotion. To Justify the increasing expenditures on promotional aspects, comprehensive and exhaustive studies are needed to be conducted to measure their effectiveness. For example, Nirma washing powder manufacturer wants to study effectiveness of its various promotional policies in comparison with its competitors like Hindustan Lever, Godrej, etc.

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4. Research on Distribution Policies Location and design of distribution centres, design of distribution channels, handing and packing of merchandise, location of warehouses, cost analysis of various distribution-mix elements like warehousing, transporting, inventory control, material handling, etc., managing transportation methods; dealers' supply and storage requirements; and functions assigned to be performed by the middlemen. For example, M/s Kelvinator India Ltd. wants to establish warehouses for distributing its refrigerators throughout the country. How should they go for it?

5. Research on Pricing Policies Pricing research includes research on demand elasticities, perceived prices, discounts, allowances, pricing strategies, new product pricing, cost analysis, margin analysis, etc. What pricing policies are suitable for a certain product at a particular stage of product life cycle? Whether skimming or penetration pricing policies should be adopted for pricing a new product? Whether loss-leader pricing, prestige pricing, odd pricing, psychological pricing, or other pricing policies should be adopted to price the company's present products? Whether cost-oriented, demand oriented, or competition-oriented pricing method should be adopted? All these pricing policies' aspects are required to be investigated to increase pricing effectiveness. For example, M/s Reliance Industries Ltd. intend to increase prices for different brands of their textiles. How and when they should go for this price hike uis-a-uis prices of Raymonds, Grasim, etc.

6. Corporate Responsibility Research The business organisations cannot survive and flourish in an unhealthy society. The company might be interested to see whether the consumers are unintentionally harmed by the company by adding to the pollution of environment, adding to the social costs, excessive expenditure on packaging and promotion, not allowing consumers to know about the product quality and manufacturing, etc. Research is needed to be conducted on anti-pollution devices, consumerism, attitudes of consumers to package designs and promotional strategies, attitudes to company's adding to social costs, etc. This area of research is gaining significance because of increasing consumer awareness. Chasnal coal mines disaster, Andhra Pradesh sea storm disaster. Union Carbide (Bhopal) methyl isocyanate gas leakage tragedy, industrial pollution of Ganga river and poisonous gas leakage in Sri Ram Fibres in New Delhi a few examples of negligent corporate responsibility research. He the researches on these issues been carried out, magnitude of disaster could have been lowered to a larger extent.

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7. Miscellaneous Research Activities Various other research activities which are not conducted in a repeated manner in a company can be put in this category. This may include research on diversification, satisfaction and imlivation of sales personnel, governmental actions and attitudes to corporate sector, international marketing research, long-range forecasting, ecological impact studies, etc. The companies have to take up such studies on occasional basis. For example, a Ludhiana-based handtool manufacturer intends to enter the international market. How can he go for the overseas marketing research?

IMPORTANCE OF MARKETING RESEARCH Business executives are becoming increasingly dependent upon marketing research. They want quick and pertinently accurate information flow from the internal and external environments of firms to facilitate the process of decision-making. The decisions may be concerning environmental changes and probable impact on the firm, setting objectives, formulating policies, finding marketing opportunities, determining marketing sub-strategies, planning marketing progranmrnes, allocating resources to programmes, planning and organising specific marketing operations and making tactical decisions regarding required changes. The increasing importance of marketing research is based on the following three trends.

1. Shift from the Local to National and International Markets Business executives are pushed away from the local markets because there is a tendency and need for expanding operations. This widening gap between the executives and markets can be fulfilled by an appropriate and timely flow of information from title markets to the executives. This accurate and timely information is required by executives for effective decision-making. If the information flow is not maintained the executives at the head office may lose contacts with the far oft markets where sales are being made. MR function of maintaining continuous flow of accurate, reliable, and timely information attains heightened significance in view the of the Government policies of globalisation.

2. Transition from Consumer Needs to Consumer Wants Today, there is a manifold increase in consumers' real income (purchasing power). The increase in discretionary income (income that can be spent for non-essential items) of consumers attains new dimensions. Consumers can purchase non-essential items out of their discretionary incomes after comparing several competitive items available to them. The consumer may purchase a colour TV, a refrigerator, an air-conditioner, a stereo or any other such item with discretionary income or put it in savings bank account. The marketing executives are interested to know : What are the consumer's preferences in buying and how promotional tools could be applied to favourably change his attitude toward company's

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products ? The discretionary expenditure can only be measured with the help of a planned research. The businessman is interested to know that how these discretionary incomes can be attracted and how the consumer can be allured to spend these on his goods rather than on the competitors'.

3. Shift from Price Competition to Non-price Competition Marketing executives require information on the effectiveness of such marketing tools as branding, product differentiation, market segmentation, advertising, and sales promotion. These are the tools which can create differences, real or imagined, in the minds of consumers regarding competitive products. Pirms lacking this essential information are at a competitive disadvantage in relation to other firms in the same industry. It maybe expected, all other things being equal, that the firm with inadequate information flow (marketing research) will have to pay a severe penalty in the form of reduced sales and profits. Usefulness of marketing research to marketing management is explained.

Uses of Research to Help Marketing Management to Make Decisions I. Research to make Target Decisions Who are our target customers ? What are their demographies ?

Should we aim our promotion at more than one target market ?

What are strengths and weaknesses of our competitors who count on the same target consumers ?

Is the size of our target market likely to Increase, decrease, or remain the same in the near future ?

II. Research to make Advertising Decisions What kinds of advertising appeal, slogan, and copy should we use?

What media should we use? How should we allocate our advertising budget among the various media?

How large should the advertising budget be?

How effective is our advertising programme in selling our products?

III. Research to make Business and Economic Decisions What is the projected short-term, mid-term and long-term demand for our products?

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Where should we locate inventory centers and retail facilities?

Should we lease or own our real estate locations?

How much money should be allocated to new product development?

IV. Research to make Product Decisions What modifications should be made to extend life cycle of existing products?

What products should we add or delete from our product line?

What changes should be made in the packaging of specific products?

Should we expand, contract, or maintain our existing product line?

V. Research to make Market Planning Decisions What should be our overall marketing goal for the upcoming period?

How should the market be divided Into territories ?

What quotas should be assigned to individual sales force people ?

How should the sales force be compensated ?

If answers to these questions are worked out, marketing management decision-making is greatly facilitated.

MARKET RESEARCH VS. MARKETING RESEARCH The terms "Market Research" and "Marketing Research" are often used interchangeably.

Practically, these two terms have different meanings. Generally, people who are not well conversant with marketing terminology use the term "Market, Research" for Marketing Research. Thus, Market Research may be regarded as a misnomer for Marketing Research. It was prior to 1940, when the marketing concepts were not clearly defined, market research was being used for collecting and analysing of limited information from a particular market. In a nutshell, market research is a broad term whereas market research is the wrong nomenclature used for representing the marketing research. It may also be mentioned here that marketing research is a broad the term whereas market research has a narrower scope.

To differentiate the two terms in order to further clarify their meanings, let us define both these terms separately. Marketing research as defined earlier is the systematic and objective process of identifying, formulating and objective setting of a marketing problem and collecting, processing, analysing,

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interpreting and presenting data in order to find a justified solution for the problem. Whereas market research is a process of collecting information about who, what, where, when, why, and how of actual and potential consumers in a particular market.

This means the scope of marketing research is more broad as it includes the study of different marketing problems relating to marketing-mix elements, micro-environmental variables (viz., buyers, competitors, dealers, suppliers, etc.) and macro-environmental variables (viz., economic, socio-politic, technology and legal).

The scope of market research is narrower because it is used to collect and analyse the limited information on some specific aspects regarding a particular market.

Also marketing research is a systematic and objective process of solving marketing problems, whereas market research is a process of collecting information on some aspects of marketing in a haphazard manner.

Marketing research can solve any problem of marketing, e.g., decline of sales of a particular product in India, measuring advertising effectiveness in certain markets, forecasting sales of a particular product in particular markets in India, etc. Market research can only partially solve a problem because of its nonsystematic approach of collecting and analysing data about a marketing problem. For example, sales of a particular product is declining in Mumbai market and the firm manufacturing that product asks one of its employees to collect whatsoever information is available in this regard, is a case of market research, whereas the same piece of research carried out in an objective and systematic manner becomes a case of marketing research.

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SELF – EVALUATION QUESTIONS :

7. List of two career opportunities of M.R. 8. Information provided by MR is _______________.

9. List two type of research.

Answers : 7. Director, Analysts.

8. Life and blood 9. Research is market, Research is product.

ROLE OF MARKETING RESEARCH As already emphasised elsewhere in this chapter, marketing research plays a vital role of making available the right information at the right time, in the right place and to the right person for use in decision-making. Thus, it facilitates decision-making concerning marketing-mix elements, viz., product, price, place, and promotion. All firms have to use marketing information if they want to be successful in their business operations. Some firms may be using marketing information lesser than others depending upon the nature and type of business. Following are the major users of marketing information:

1. Consumer Goods Manufacturers Since they are very far from their customers, they rely very heavily on MR information. They use MR to test new product ideas, new package designs, measure effectiveness of their promotional efforts and determine brand, product and company image. In India, many consumer goods manufacturers like Hindustan Lever, TOMCO, Go-drej, Proctor & Gamble, etc., are using MR information to make decisions in the above mentioned areas.

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2. Industrial Goods Manufacturers These firms use MR lesser than consumer goods manufacturers. This way they are not far removed from their customers. They use MR to a certain extent to determine market and sales potentials by carrying out customer, order, territory, and product line analysis. They also use MR for forecasting their products as their demand for industrial products is heavily dependent upon the economic fluctuations.

Price is the main consideration in sales and purchase of such products. In India, firms like Kirloskar, Batliboi, Voltas, TELCO, Ferguson, etc., are using MR information to a greater extent.

3. Market Intermediaries Agents, merchants, brokers, wholesalers, retailers, jobbers, salesmen, distributors, dealers, and other such intermediaries use MR information to a certain extent but lesser than the above described two groups of users. Intermediaries do not need much of MR information as these are in direct touch with the firm and customers. They gather MR information through their experience in handling a large number of customers. Still, some wholesalers, dealers, and distributors particularly of technical products like tractors, engines, etc., are assigning MR projects to various research agencies to gather more clear and definite market information.

4. Consumer Services Banks, insurance companies, LP gas agencies, transport companies, tourism corporations, etc., use MR to a reasonable extent. They need more information on consumer attitudes. In India, service organisations have started realising the growing importance of MR and they assign small research projects to understand the consumers' viewpoints with regard to their services.

5. Media and Business Services Ad agencies, consultancy firms, TV, newspapers, magazines, radio, etc., are the very heavy users of MR information. They have got their own MR wings which collect information and subsequently, process these. They sometimes purchase information from individuals and organisations possessing such information. These organisations use modern and sophisticated techniques to analyse and interpret the MR information. They in turn disseminate and thus sell the collected and analysed information. In India, a number of business consultants, TV, radio, newspapers, magazines, and Ad and MR agencies (e.g., Massey Ferguson, Thomson Associates, Lintas, TATA Consultancy, etc.) are engaged in MR.

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6. Farmers Lately, farmers have also realised the importance of MR as they are interested to get better revenue for their agricultural produce. They want to know where they should sell and at what time and price so that they can earn better profits on their agro-based products like grains, vegetables, fodder, seeds, sugarcane, etc. They are also interested in MR because they are interested to purchase the best quality of agro-inputs for their farms. Though the MR is great significance to farmers yet, many farmers in India have not started reaping the benefits of MR.

7. Rural Markets Business people who operate in rural markets also require MR to a great extent. They intend to have information on consumers' needs, wants, and perceptions in rural markets. Rural marketing in developing countries like India is of great significance. Everyone is aware that more than 80 percent of Indian population live in rural areas. This is a vast market if properly tapped through MR efforts. Some associations of business houses, institutes and councils have been sponsoring certain MR projects on rural marketing. There is a need to further encourage and develop this type of activity so that more information could be gathered from rural markets and both poor people and business houses can be mutually benefited. Some agencies like UGC, ISRO, CSIR, ICSSR, etc., have come forward sponsor certain research projects in the area of rural marketing. Some firms like Mahindra and Mahindra, Punjab Tractors Limited, Escorts, also assigned some research projects to market researchers to explore rural markets in order to find market potential for their products.

8. Non-Business Users Government agencies, philanthropic and educational organisations, management associations and management institutions have also started using MR information. They are not after profits but of course, they are gathering and analysing pertinent market information so that they can improve upon their knowledge and skill in their respective areas. In India, All India Management Association, AICTE and various chapters affiliated to this association are doing a lot of work by publishing a host of market information in their respective publications. Also in management institutes and university departments a large number of students are working on MR projects for the benefit of the academics, business organisations and society.

9. Government Organisations Marketing research is also carried out by governmental organisations. The information collected by certain organisations like Economic & Statistics Department is of immense help to the Government in formulating her policies and plans. The information contained in statistical books published by the

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Government is also of help to entrepreneurs, researchers and business organisations. Generally, the Government conducts marketing research on issues like data bank functions, technology transfer and utilization, economic development, assessment of public policy and planning impact. The Government also collects information on agricultural market surplus, industrial market surplus and consumer goods market surplus, price indices, projections or forecasts for the future, exports-imports, etc. The Government is using this information for her own policy formulation and planning.

10. Miscellaneous Users Several governmental and non-governmental marketing research agencies are conducting research on feasibility of new projects, forecasting the market demand, competitors' activities, consumer behaviour, environmental changes, economic changes, technology changes, cultural changes, public policy changes, and marketing-mix elements changes.

In nutshell, there are a variety of users of marketing research varying from private business organisations to government departments. It is advisable that the Government creates a separate department to carry out different marketing studies and the information be compiled in the form of books.

This will facilitate different information users like business organisations and researchers. This will also help unnecessary duplication of records at various levels if these sources are well publicised and made available to users. This will further help in saving cost, time and energy on certain studies, information of which is already available. Some researches are undertaken only because researchers do not know the source of already existing information.

MARKETING RESEARCH SEENARIO IN INDIA In India, as described in the above section, MR so far has not contributed to a desired level in collecting and analysing market information. Thus, MR position cannot be said as very sound and comfortable in Indian situations. MR is relatively a new discipline in Indian situations as compared to research in other behavioural sciences. Marketing information is not yet considered as a very significant aspect of management in many traditional business organisations in India. It may be because of the comfortable demand and supply position (that is demand dominates the supplies) that MR need is not felt much. Many Indian firms do not believe in MR. Some firms who have realised the importance of MR are not allocating the funds needed to carving out such projects effectively. Only meager budgets (much less than one per cent of sales) are earmarked for MR activities. Even many firms do not employ any executive to look after MR activities independently. MR functions are performed by marketing and sales executives. Where MR executives are working, they are not provided proper practical training in MR techniques. Hence, they are not able to bring about the desired results.

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The situation is so pitiable that even the so-called professionalised firms have not bothered much to develop the area of MR. We hope that firms will realise the importance of MR slowly and allocate proper funds and human resources to carry out its activities effectively.

Professional Standardisation It is needed to improve and develop MR in Indian business organisations. This can be accomplished by training and deploying right human and financial resources exclusively to MR activities.

People who have professional qualifications in MR should be employed to the positions. meant for this purpose. Professional standardisation will help the organisations in handling the marketing information in an effective manner.

The Study 9

According to a study "MR in India—the State of the Art", recently conducted by Consulting and Research Enterprises, Hyderabad, the Indian Company Executives have the realisation that [here is a great need of MR today. The above agency' mailed about 500 questionnaires to organisations selling consumer goods, industrial goods, and services. Out of this 13 executives responded to the survey.

These respondents included 24 per cent chief executives, 29 per cent vice-presidents and general managers of marketing divisions and rest were senior marketing managers. Eighty three per cent of these respondents were from private sector and 17 per cent from the public sector. The population for this study was composed of organisations whose turnover ranged from less than a cross to over Rs. 800 crore. This study questionnaire included 20 attitude statements about MR—how they conduct and use it and how much they spend on it.

Main Findings The main findings of this study are as follows: 1. Ninety one per cent of the organisations felt that MR is very useful to them.

2. Fifteen per cent said that intention is more important than MR. Industrial goods companies need more MR than consumer goods manufacturing companies.

3. Forty two per cent said that MR takes longer to be of real use.

4. Sixty five per cent said that MR does not cost more than it is worth. Fifty eight per cent agreed

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that costs incurred on MR are relatively lower to the benefits rendered by it. Small organisations said that they cannot afford MR. 5. More than 65 per cent of the respondents have high expectations from MR but they are satisfied with the current state of affairs in MR findings and their practicability.

6. Indian companies have positive attitudes towards MR but they spend miserably low amounts on it. The study reveals that MR expenses as a percentage of sales turnover range from less than 0.01 per cent to 1.3 per cent. Consumer goods companies tend to spend more on MR than do industrial goods companies.

7. Majority of the organisations executives claim to know the information they need through MR and where to use it for decision-making. It is revealed that the most frequent use of MR is really only in the area of new product decisions followed by other important applications, e.g., estimating market share, gathering competitive information, demand estimation and so on. Less than 20 per cent use MR for measuring advertisement effectiveness and only 40 per cent use it for crucial decisions such as diversification and market segmentation.

8. Fifty seven per cent agreed that MR in India is not of expected quality. Only 40 per cent agreed the MR agencies are performing their research tasks ethically.

9. Sixty nine per cent of the organisations use company sales staff, 44 per cent use in-house market researchers, and 52 per cent use MR agencies. Managers are ambivalent about the issue of their own staff versus the outside agencies doing a better job of MR. 10. Researchers face the problem in conducting good MR in India because of scanty secondary data.

Other countries, like the U.K., have more organised data about India than we have. Various handbooks, journals, etc., become useless for MR as the information presented in these is obsolete. Even syndicated MR services, e.g.. Operation Research Group, MARG, Indian Market Research Bureau, etc., have not done a good job in improving the availability of secondary data on overall MR operations. There is also a dearth of information in the high-technology area.

Conclusion In a nutshell, the study reveals that executives are aware of the importance of MR and are also using it to a greater extent. They are doubtful about the quality of MR agencies and many employ their own sales staff for this purpose. They spend a lot on advertising but are not ready to spend more on MR activities. They generally complain that MR in India is of elementary level and precludes sophisticated analysis. It can be said that competition will increase and MR agencies will have to perform more specialised jobs with the increased commitment to clientele. This study is a pioneer work in the area of MR in India and it has revealed many attitudinal and perceptual viewpoints of Indian managers regarding

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MR but a lot more remains to be done. Hopefully many such research assignments of MR would be undertaken by researchers in the near future.

RELATIONSHIP OF MARKETING RESEARCH WITH OTHER DISCIPLINES There is a good degree of interaction between various oilier disciplines and marketing research. A rich heritage from the past. and many contributions of contemporaries are being utilised by the marketing researchers. A working knowledge about nature, methods. data, and terminology of the related fields becomes essential for a researcher in marketing. This working knowledge enables the researcher to use various inter-disciplinary aspects in his research project. Among the most important fields of Interactions and interrelations with the marketing research are: economics, psychology, sociology, history, philosophy, mathematics, business administration, communication and innovativeness.

Economics The operations of economic system have a bearing on the marketing research decisions. What economic policies are there of the Government? What stage of business cycle like inflation, deflation, recession, recovery, boom etc.,— an economic system is dowelling in? What is the purchasing power of people? All these and several oilier economic functions interact with the marketing research decisionmaking.

Psychology The psychological processes in the consumer's mind determine whether he would purchase a particular product. How lie will purchase? Why he will purchase? What motives and drives will compel him for making a particular purchase? Why he accepts or rejects a product? Why he likes or dislikes a product? These and various oilier related questions of psychological nature interact, with the marketing research decisions.

Sociology Sociology and marketing research are interrelated and interact with regard to social class, caste, culture, sub-culture, reference groups, personality, traditions, customs and taboos. These sociological factors influence the buying behaviour, needs and wants of consumers. Family which is a unit of purchase is also a sociological unit and its locus of authority, culture, social class and life cycle affects decisions of marketing research.

Philosophy

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Philosophy provides logic to a market researcher. The logical researchers are the researchers in the real sense. Philosophy leads the marketing researcher to justify with scientific reasons each conclusion and recommendation he puts forward.

Mathematics and Statistics They provide numerical and analytical ability to a market researcher. The mathematical and statistical formulae are applied to various data of marketing research and significant conclusions based on scientific reasons are drawn.

Business Management It is the root of marketing research from which the latter has emerged. Marketing is a functional area of management and marketing research is an off-shoot of marketing. So marketing research can be regarded as a grandson of Business Management. There needs to be an interaction and interrelation between the two for each of the decisions made.

Communication The information flow is the life and blood of marketing research. The information system is an offshoot of communication as an independent area. Communication provides information required by the marketing research. For each marketing research decision, the pertinent information is the backbone.

This information can be made available through an effective communication system which is free of semantic, physical, and personal barriers.

Creativity and Innovativeness Creativity may also be treated as a separate and independent field which interacts with the marketing research. Marketing research is always aimed at a continued innovation. New ideas come through creativity and these are tested by MR. Hence the two are interacting and interrelated with each other.

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USES AND LIMITATIONS OF MR Uses Following are the major uses of MR : 1. It helps in obtaining sufficient background information where absolutely nothing is known about the problem area or product field in question.

2. In helps in concept identification and in its exploration.

3. It is used to identify relevant and salient behavioural patterns, beliefs, opinions, attitudes, motivation, etc.

4. MR is useful in establishing priorities amongst categories of behaviour and psychological variables like beliefs, opinions and attitudes.

5. Quantitative MR is generally helpful in defining problem areas fully and formulating hypotheses for further investigation and quantification.

6. MR is useful during a preliminary screening process in order to reduce a large number of possible contenders to a smaller number to probable ones.

7. MR also helps in obtaining large amount of data about beliefs, attitudes, etc., as data input for multivariate analysis studies.

8. It is also used in conducting post-research investigations or 'post mortems' to amplify and explain certain points emerging from some major study without having to repeat these on a large scale.

9. It is used in piloting questionnaires to test comprehension, word forms, the memory factor, etc.

10. Qualitative type MR is used where we cannot discover in a simple straightforward manner, like direct questioning, why people behave as they do because the field of enquiry is personal and embarrassing in some way. In such circumstances some alternative is called for in which projective questioning technique may be used in a qualitative research setting.

Limitations Following are the major limitations of MR : 1. MR uses the techniques of science but it itself is not an exact science. Therefore, the results obtained are not very accurate as compared to physical and chemical sciences.

2. MR is carried out in open marketplace where variables are acting on the research settings. comparable anyway to the controlled laboratory as available in physical and other example, suppose we want to measure effectiveness and conducting an experiment markets assuming that conditions will remain during the experiment period. If the competitors change their strategies

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during the period of experiment results will get affected.

3. MR is carried out on consumers, dealers, wholesalers, retailers, etc., who are human beings.

Human be; a tendency to behave artificially when they know are being observed. So the customers and respondents start behaving artificially when they know that their attitudes, opinions, beliefs, etc., are being should. aspect of human behaviour distorts the MR results.

4. Subjectivity is the main limitation of MR. It is to verify the research results. Also the replication of the same project on the same group of respondents different research results. Verification important characteristic of physical science represent to a lesser extent in MR. 5. The MR projects generally take longer time period ones. The time by which the research results are market situation also undergoes a change. Hence gap affects the successful implementation of research results.

6. Researcher intentionally or unintentionally is lasing the research results in MR. While collecting data, 'he researcher may not motivated and may engage in cheating and misrepresentation of facts. Sometimes, researchers may be misled by the respondents by providing false information.

They may be playing fun with the researcher or they may be trying to help the researcher in completing his task in a shorter time period end in the process distorting the research information results.

7. Generally, the lack of appropriate training to researchers leads to misinterpretation of questions to be asked for data collection. They may not be able to collect and present it in a systematic manner.

8. Some research sponsoring agencies are instructing the researchers to come out with particular type of solutions to particular type of problems. This may also be done by certain top management executives to justify their arguments and thus they want the researchers to come out with particular type of research results and suggestions. These whimsical attitudes of the top management and agencies lead to distortion of research results.

9. Many research executives are not very clear about the research problem and its objectives. They are not able to direct the researchers in clear-cut way, how to conduct the research. This leads to haphazardness in the research and researchers are not able to do anything concrete.

10. In India, research is taken as a time-wasting and resource-wasting activity. Therefore, MR does not get its due resource allocation in the organisations. Time and money remain the major limitations

worth

mentioning

in

all

sorts

of MR studies. This discourages the researchers and in turn they do not give their best to the organisations. There is an immediate need to change this negative attitude harbored by many Indian business houses.

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11. The researchers are not much motivated to make use of computers for analysing the research results. First, the computers are very costly. Secondly, many researchers have not been imparted proper training in-using the computers. If computers are widely used these will reduce the time taken by researchers for analysis and research results can be produced to the sponsors in a shorter period of Lime. Computers can be of much help for conducting multivariate analysis.

ORGANISATION OF MR DEPARTMENT In Indian organisations, separate MR departments do not exist, (barring a lew MNC's). Marketing research is treated as a responsibility of marketing department which may have some executive for MR functions. It is advisable that all medium and large business organisations in India should have a separate section of MR under the charge of an independent MR Manager. This MR section depending upon the nature of business can be organised in three different ways: (1) functional organisation, (2) product organisation, and (3) geographic organisation.

For companies manufacturing commodities like consumer durables and non-durables each executive looks after a different market segment. He may have assistant executives on regional and district basis. All regional and district executives of his zone would be reporting to him and he in turn would report to MR Manager. This is more decentralised form of organisation than product organisation.

Only disadvangeous is that span of control of each executive is more which would cause problems of supervision and control.

None of the above discussed organisation types of a panacea for marketing research problems. It depends upon the nature and size of the business that which type of these organisations would be suitable for a particular business organisation. It also depends upon the attitude the top management has towards marketing research in an organisation. It is advisable that the Indian organisations should have separate sections of MR which would facilitate these in solving marketing problems in more systematic manner.

Functional Organisation MR department can be organised according to the forms. There may be a separate executive to look after It each function. Each functional executive may have assist fives to perform the activities of his Functional area and functional executive may report to MR manager who in the port to Vice-president (Marketing). Each executive carries out research activities pertaining to his area; This is shown in this is a more centralised type of organisation.

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Product Organisation When a company has many products, it can organise department according to products; Each executive looks after all marl search problems concerning his product, and reports to manager.

In this case, there is more decentralisation of an each executive would be independent in-charge of his product’s research activities. But the executive has to have all technical formation about his product.

Geographic Organisation This type of organisation is suitable to companies which in the nationwide market. This is particularly suitable to there which are manufacturing consumer goods and which would the whole national market into some (four) zones. Such zone has a separate MR executive. Even certain trading companies like Batliboi, etc., are adopting the similar practice concerning their MR organisation.

CAREER OPPORTUNITIES IN MR Of late, in India, the career opportunities for men and women in marketing research have dramatically increased as compared to other fields and yesteryears. A number of organisations in India like DCM, Escorts, Hindustan Lever, etc., have come forward to employ various educated individuals for the purpose of carrying out investigations concerning marketing problems. This dramatic increase of career opportunities in marketing research in the recent years is attributed to the following reasons:

1. Intensive Competition There is intense inter firm and inter brand competition. New brands are appearing in the market with a rapid pace. This cut-throat competition has created the need for more exact, qualified and experienced problem solvers.

2. Growing Importance of Marketing Planning and Decision Marketing which used to be a neglected area during the past years has become an extremely important function of business management. Efficiency of marketing planning and decisions have become the strong platform for successful business operation. New organisation structures are being created to adjust qualified marketing researchers.

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3. Sophistication in Data Processing Technology With the tremendous increase in quantum of information in modern business organisations, the data processing technology has also improved. The increased data needs more qualified people to handle sophisticated computers which in turn can handle a lot of data in a fraction of a second with the least number of specialists working. Therefore, the qualified researchers with knowledge of computer programming and data processing have very bright prospects to grow in the business world. In more and more modern firms computerisation is taking place and sophisticated and advanced technology computers are being installed.

4. Increasing Marketing Research Budgets At present, the Indian business organisations are spending a miserably low amount of money on marketing research. Less than 0.05 per cent of the total sales is being budgeted for marketing research in consumer goods industries. The budgeted expenditure for marketing research is a bit better in the case of industrial goods industries. At present, they are spending more (about 1 per cent of sales) on advertising.

But slowly they are getting aware that advertising and marketing without proper research guidance are risky propositions. With the growing awareness about research importance, the number of people needed will also increase.

This is evident from the above mentioned factors that the career opportunities in marketing research department will continue to increase with an accelerated pace in the foreseeable future. During the coming decade, young males and females having postgraduate qualifications in management with marketing specialisation will be having brighter prospects of growth in the Indian business world.

There will be career opportunities in the form of following organisational positions: 1. Directors 2. Deputy Directors 3. Assistant Directors 4. Senior Analysts 5. Analysts 6. Statisticians 7. Clerical Supervisors 8. Field Work Directors

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9. Junior Analysts 10. Librarians 11. Full Time Interviewers/Investigators 12. Tabulating and Compiling Helpers.

Annual salary structure for the these positions will range from Rs. 75,000 to Rs. 2,50,000 in the coming 5-10 years. MR personnel will be the highest paid and most significant positions in the organisations.

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QUESTIONS 1. What is meant by marketing research.

2. Explain the nature and scope of marketing research.

3. Market research √s marketing research.

4. Explain the role of marketing research.

5. List out the relationship of marketing research with other disciplines.

6. Explain the uses of M.R. 7. List out the limitation of M.R. 8. Explain the role of M.R in Indian seenario.

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UNIT – II MARKETING RESEARCH PROCESS INTRODUCTION Marketing research cannot be conducted abruptly. A researcher has to proceed systematically in the already planned direction with the help of a number of steps in a sequence. The present chapter attempts to highlight the various steps involved in conducting research. All the research conducting steps, when combined together, form the marketing research process. If all the steps are taken in a systematic manner the research conducted becomes quite effective.

A researcher may undertake any of the three types of research investigations depending upon the project in hand. These three types of research include: (i) basic research, (ii) applied research, and (Hi) designated fact gathering.' Basic research or fundamental research refers to those studies sole purpose of which is the discovery of new information. The basic research is conducted to extend the horizons in a given area of knowledge with 10 immediate application to existing problem. For example, Geoge Boole and others developed algebra of logic (knowledge). Applied research is an attempt to apply the various marketing techniques which have been developed as basic research first and later on, they became applied research techniques. Applied Research is an attempt to apply the basic principles and existing knowledge for the purpose of solving the operational problems. For finding the effect of increased advertising expenditure on turnover; finding the reasons for the declining sales causes for declining morale of a company's sales force, type of research the researcher knows the probable solution problem but to gain deeper insight into the problem he conducts the research. Designated/act gathering refers to a research where the investigator attempts merely to gather some predetermined data.

For example, Videocon TV Company wants to know how many households possess their TV sets as compared to sets of other TV manufacturing companies in a particular city. Thus, the researcher having such a research project limits his task to data collection.

Each of the three types of research requires different combinations of the research steps. Applied research needs all the research steps to be taken. Whereas the basic research requires only those steps which are decided as necessary depending upon the nature of the problem to be investigated. In the designated fact gathering, we can directly start with the data collected and limit our task up to this level.

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STEPS IN MARKETING RESEARCH The marketing research process is carried out according to a designated series of steps which are required to be taken in a chronological order.

Problem Definition The first step in a marketing research process is to define the problem chosen for investigation.

This step is a very significant one since it is said, "A problem well defined is half solved." On the other hand, if the problem is defined vaguely, a wrong problem is defined, or the uses of research are not clarified, then the research results may be completely useless the management and research effort of the investigator is a futile exercise.

Generally, it has been observed that poor definition of research problem is the result of faulty assignment of problem by the top management. For example, if the top management of a company is interested in investigating the reasons for declining sales, the marketing manager may ask the marketing research executive gate everything regarding the sales. The marketing manager, problem assignment, has not specified which aspects (viz., production planning, pricing, distribution channels, advertising, selling, etc.) are to be studied. The marketing manager asks the researcher to study all aspects affecting sales. But ail the aspects may not be responsible for the decline in sales. Therefore, the marketing manager should have specifically told the investigator that the latter should study product planning, pricing policies, distribution policies, promotion policies, or other policies of marketing management affecting the sales. Thus before assigning it to the marketing researcher, the problem at hand must be defined clearly. It may be reiterated that a well defined problem leads to a better solution.

In order to define a problem properly, we should determine the nature of research. The problem illustrated above is of exploratory nature, the major emphasis of which is on gathering new ideas or insights into it. After understanding the nature of the problem a preliminary analysis may be carried out the techniques, viz., (i) situation analysis; and (ii) informal investigation. Unfortunately, the research situation is often ignored. But me situation analysis is vital to obtain background information on the problem. Situation analysis means the circumstances us the research is being conducted. Situation analysis take note of the factors affecting the marketing operation of business organisation. Six categories2 of information can be used in preliminary investigation : (a) the product, (b) the company, industry and competition, (c) the market, (d) me channel of distribution, (e) the sales organisation, and (f) the advertising and sales promotion policies. For example, if Kirloskars have find out reasons for the declining sales of their diesel engines, they must. analyse the problem situation in view of above mentioned factors.

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Informal investigation refers to the discussion will customers, dealers, top management personnel company, and other parties concerned with the problem. The investigations may be designated as the pilot survey. Generally, problem and proposed techniques to solve it are cussed with a panel of experts and respondents. They are which are suggested by the experts and respondents a corporate in research proposal. For example, in the declining sales, we may select a few academicians, practitioners, customers, dealers, competitors, sales staff, etc., and discuss the research proposal with them. There can be two purposes to carry out the informal investigation: (i) to develop and select [he hypothesis to be used in the final study; and (ii) to estimate the complexity involved in marketplace problems.

Although the situation analysis and informal investigation are simple activities, yet they are of critical importance in the research process. These activities help in defining the research problem clearly.

Eventually, ill-defined problem leads to invalidation of the entire research exercise. Therefore, it is creditable to mention at this point that the researcher should attentively carry out these research activities.

Research Design Once the problem is defined, the next step, that is the research design, becomes easier.

Research design is the basic framework which provides guidelines for the rest of research process. It is a map or blueprint according to which the research is to be conducted. The research design specifies the methods for data collection arid data analysis. The researcher specifically pinpoints that to carry out research properly: (i) how would the data be collected, (it) which instruments for data collection would be used, and fin) what. sampling plan would be used?. The researcher has to carefully decide and make a choice from the group of different alternatives available to him.

Data Collection Methods There are two types of data : secondary and primary. The secondary data refer to those data which are gathered for some other purpose and are already available in the firm's internal records and commercial, trade, or government publications. On the other hand, primary data do not exist already in records and publications. The researcher has to gather primary data afresh for the specific study undertaken by him. The primary data are explicitly gathered for a specific research project at hand.

It is always in the fitness of things that the researcher attempts to look into sources of secondary data before start in, So collect primary data. All too often, it has been observed that firms (researchers) had wasted a lot of time and money on collection of primary data, while the secondary data were already

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available in various records and publications. Therefore, immense of time and money can be saved if secondary data is first searched and used for the study.

Of course, it is essential to collect primary data if the secondary data is not sufficiently available.

The primary data can be collected by three methods: (1) observation, (2) experimentation, and (3) surveys. Let us explain each of these methods in some detail in the underlying text.

1.

Observation: In observation method, we observe the actions of the respondents, either directly mixing with them or indirectly without getting mixed up with them. For example, in the case of declining sales of diesel engines, Kirloskar's investigators may go and mix up with the farmers using the engine. After revealing the purpose of study to the respondents, enquiries are made and data are collected. In indirect observation method researcher does not reveal the purpose of study and observes the respondents as a stranger. For example, if we are interested to know the shopping habits of the people, we can carry out observation of buyers in a general store. In direct observation, we tell the purpose of study to people being investigated and get informally mixed up with them as a buyer. Whereas in indirect observation, we do not reveal the purpose of investigation to the respondents. We tell it to the owner of shop and sit down silently to note the purchasing behaviour of people.

For example, influence of accompanying children on shopping patterns of a housewife can be observed in a general store.

2.

Experimentation: The experimentation method emphasises the creation of a controlled environment where some variables are allowed to vary and cause-and-effect relationship is studied. For example, in our preceding case of declining sales of Kirloskar diesel engines, we may consider that advertising used is not effective enough and is not able to stop the declining sales. We may conduct an experiment. For this, we may take three equally matched markets: Delhi, Chennai and Mumbai. In one market, we may double the advertising expenditure, in second we may reduce it to and in third we may keep it constant (normal). After the stipulated time period we may record the sales effect of advertising keeping all other variables constant (controlled). On this basis we may decide what action we should take to make advertising more effective.

3.

Suruey : One of the most common and widely used primary data collection methods is the survey. With the use of surveys, we can gather a wide range of valuable information on overt behaviour of the consumer, viz., attitudes, motive, and opinions. The earlier two methods (observation and experiment) are not capable to yield such information. The primary data, using any of these three above-mentioned methods, can be collected from any population comprised

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any type of respondent groups like customers, middlemen, competitors, salesmen, company employees, etc.

Research Instruments The researcher while collecting the information, is looking for, a good research design and suitable research instruments. When observation method for data collection is used, the researcher may make use of instruments, viz., cameras, tape recorders, VCRs, tally sheets, etc. In experimentation method also the same instruments may be useful. Whereas in survey method, questionnaire is the Instrument most frequently used and yields the most satisfactory results. Though we have dealt with the construction of questionnaire in greater detail in a later chapter of this book yet, it is creditable to mention here that a great care is required to be taken while dealing with certain aspects of questionnaire such as: (i) types of questions to be asked, (ii) number and form of questions, (vi) wording of questions, and (iv) sequencing of questions. The construction of a good questionnaire is an art and takes considerable time for a professional researcher.

Sampling Plan First step in the sampling plan is to decide the universe or population (the whole collection of items to be studied by the researcher). Once the universe is decided, the researcher must concern himself to find: the answers to the following four questions: i.

What sampling unit should be studied?

ii.

What should be the sample size?

iii.

What sampling procedure should be used?

iv.

What contact method should be used?

Sampling unit: Perhaps the basic thing to be decided is the sampling unit (who is to be surveyed?). For example, in a survey on the attitudes towards the use of toilet soaps with reference to a specific brand; whether husbands, wives, children, or a combination of all of them is to be surveyed?

Sample size: The second issue to be decided is the sample size (how many units to be surveyed?). Of course, the whole of the universe cannot be studied in a single research project. The researcher has to select a relevant fraction of the population which is a representative of the entire population or universe'. Generally, in exploratory study a sample less than 1 per cent is sufficient to provide reliable results. Whereas in motivation research, a sample of fewer than thirty respondents for in

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depth interviews is usually sufficient to reveal the significant attitudes of a large group of consumers. In any situation, the sample size must not .be increased more than 10 per cent of the universe.

Sampling procedure : How to conduct the survey? It is the next step in a sampling plan. Sampling procedure depends upon the research objectives to be accomplished through the investigation. There can be choice between probability and non-probability sampling procedures. For an exploratory research, a non-probability sampling procedure may be justified. However, for an accurate estimate of the population characteristics a random or probability sampling procedure may be used because it lends itself for the application of various statistical tests. It depends upon the nature of the research project and accuracy demanded that whether the probability or non-probability sampling procedure is better. The researcher must carefully weigh the two available alternatives while deciding about the sampling procedure.

Contact Method: The last but not the least issue to be decided in the sampling plan is to determine the contact method (media) (How the selected units be approached?). The sampling method or media refers to contact methods, e.g., telephone surveys, mail surveys and personal interviews. Each of these methods has got its merits and demerits. However, the most commonly used methods in the Indian conditions are mail surveys and personal interviews. The personal interviews, though costly, yield the most satisfactory results in a research work. In India, the telephone survey does not yield good results because many homes do not have telephones and respondents do not reveal details on the telephone owing to their personal security reasons.

SELF – EVALUATION QUESTIONS : 1. Research design is the basic ____________ of M.R. 2. The two types of data are ____________, ______________.

3. Observation means ____________ (Observe the action of the respondent).

ANSWERS : 1. Frame work.

2. Primary and Secondary.

3. Exploratory, Descriptive.

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Field Work Once the researcher has finalised the problem definition and research design, he must conduct the actual data collection operation. This step is also called fieldwork is the most expensive of all the steps in a research project. Also the fieldwork is more prone to errors. The researcher may face a number of problems during the fieldwork. The most common problems during a fieldwork are as follows:

1. Not At-homes The people (sampling units) whom the researcher wants to interview during his visit may not be available at home. The researcher in such a situation may either call back later or substitute another house just adjacent or next door. The latter alternative is better because the former is very expensive. But whether the substituted house is just a replica of the sampled house, is a question which puzzles the marketing research experts. It is generally accepted that a bias may intrude into the results of the research owing to substitution.

2. Refusal to Co-operate The researcher may find the respondents at home but he may not obtain the desired co-operation from them. If the researcher- is carefully selected and trained, he may use his tactics to persuade the respondents.

3. Respondent Bias The respondents may decline to co-operate. The researcher must establish a rapport with the respondent to avoid this. Even if they cooperate, respondents may sometimes give biased or misleading answers to the questions asked by the researcher. They do so either to finish the interview quickly or for not revealing the actual personal details. The researcher must establish a good rapport by talking informally on other issues of mutual interest first and encourage the respondents to give unbiased answers telling them that this will benefit both the parties. And assuring them that nothing will be made public and data given by them will be used purely for academic purposes only.

4. Interviewer Bias The interviewers may also introduce different type of bias in the answers owing to mere fact of their age, sex, manner, or intention. In addition, there may be conscious bias created by the interviewer owing to his dishonesty. Every interviewer tries to finish his quota of interview as quickly as possible and

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also at a cheapest possible cost. In doing so, lie may falsify the interviews. He may fill up all Ins questionnaires by himself silting at his own residence claiming not-at-homes or refusal to co-operate.

All these fieldwork problems can be minimised or eliminated even, if we select, train, compensate, control, evaluate, and maintain the fieldforce through a carefully designed method. The research director can check on telephone or by personal visit to a few of the persons claimed to have been interviewed by researcher.

If the interviewers are told beforehand that such checks will be conducted to test their sincerity, the interviewers may avoid the intentional falsification of interviews.

Data Analysis In order to extract meaningful information from the data collected, the data analysis and interpretation is carried out. The data analysis is the fourth step in the research process. The data are first edited, coded and tabulated for the purpose of analysing them. The editing, coding, and tabulating is a must when the interviewer has amassed a huge amount of data concerning the research project at hand.

The analysis is basically aimed at giving inferences of association or differences between the various variables present in the research. The analysis can be conducted by using simple statistical tools like percentages, averages and measures of dispersion. Alternatively, the collected data may be analysed by using diagrams, graphs, charts, pictures, etc. Data may be cross-tabulated to produce useful relationships among the variables involved. To conduct a more sophisticated analysis, correlation or 2

regression analysis may be used. Furthermore, various statistical tests, t, F, Z, X , etc., may be applied.

The most complicated and sophisticated analysis is to attempt rnulti-variate analysis on the available data by using advanced statistical techniques, viz., multiple-regression analysis, multiple correlation analysis, discriminate analysis, factor analysis, canonical analysis and cluster analysis. Finally, meaning of data may be extracted from the analysis thus conducted. The conclusion, summary and recommendations of research are based on the statistical analysis and inferences drawn.

Report Preparation After the collected data is analysed and interpreted, the job of marketing researcher is to present research results in the form of a systematically typed printed report. A specifically designed format must be used for research report preparation and result presentation; We may adopt with modification a generally suggested report format encompassing the following sequence: (1) Title page, (2) Table of

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Contents, .(3) Preface, (4) Foreword (introduction and need for the study with a review of literature), (5) Statement of objectives and hypotheses, (6) Research methodology—containing (a) research design, (b) data collection methods and instruments used, (c) sampling plan, (d) fieldwork, (e) scheme of analysis and interpretation of data, (f) limitations, and (g) scope; (7) Actual analysis and interpretation of data, (8) Findings, (9) Conclusions and recommendations, (10) Appendices—including: (a) copies of forms (questionnaire) used, (b) details of sample and validation, (c) data tables not directly related with the study, and cd) bibliography.

As the executive is not much interested in methodology of research but he wants the results, so greater emphasis must be placed on the findings, conclusions and recommendations which interest .the executives. The report prepared must be technically accurate as well as it should be understandable and useful.

CHARACTERISTICS OF GOOD MARKETING RESEARCH After carefully carrying out the various steps in marketing research process, the researcher has reduced the possibility of committing major mistakes. This means the research conducted would give concrete and useful results. In evaluating the quality of research project and making a value judgment on competency of the researcher, there are four key characteristics to consider: (i) scientific method, (ii) creative research, (iii) multiple methods, and (iv) the value measured against the cost of information. (i) Scientific Method The effective marketing research is based on the scientific method which is used to conduct the research. The researcher gathers the data, makes these verifiable, objective, and factual. He also develops hypotheses and tests validity scientifically through statistical tools. So in a good marketing research, there is no scope for the use of intuition or hunches.

(ii) Creative Research Creativity is an essential feature of marketing research. When the respondents do not give true answers or are unwilling to co-operate with the interviewer, in that case-indirect methods like protective techniques for interviewing must be used. These techniques make the respondents to reveal the details which they are unwilling to tell in direct interviews. It needs a lot of thinking and planning to organise that type of interviews. Therefore, only an industrious and creative researcher can carry out research with the help of projective techniques. Projective techniques have been illustrated in detail later on in the chapter on Motivation Research.

(iii) Multiple Methods

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A scientific and creative researcher does not rely on this single method for collecting data as well as for analysing them. A number of methods are available for collection and analysing the data. The creative researcher always uses more than one method for collection of data (viz., personal interviews, telephone surveys, mail surveys, observations, and experimentation). Similarly, for the purpose of analysis also he may use different available statistical techniques depending upon the type of data gathered. This makes results of the research projects more reliable and scientific.

(iv) Value and Cost of the Information An experienced, creative and scientific researcher always evaluates the research results vis-a-vis expenditure incurred on carrying out the research. The decision regarding the method of data collection, research design to be used, and analysis techniques to be employed must be made on the basis of costbenefit analysis of the probable research results. This cost and value comparison will make research most scientific and leave a little scope for malpractices like creation of bias, manipulation of research results, etc.

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Diagrammatic Presentation of Research Process

Problem Formulation Deciding whether to conduct research or using the existing relevant information

Problem Definition 1. Statement of objectives 2. Setting hypotheses

Research Design Development 1. Define the population of universe 2. Assess the relevant existing data 3. Decide the method of collecting primary data, e.g., survey, experimentation and observation 4. Define the sampling unit 5. Decide the sample size 6. Decide the sampling procedure 7. Decide the sampling method, e.g., probability or non-probability sampling 8. Decide the analytical aspects 9. Pinpoint the limitations and scope of the study 10. Decide the scheme of chapterisation for presentation of results

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Fieldwork 1. Conduct the research using the Instruments and data collected already decided 2. Adjust the problems of not-at-homes, refusal to co-operate, bias of Interviewers, and bias of respondents

Analysis and Interpretation 1. Edit the collected data 2. Code the collected data 3. Tabulate the collected data 4. Analyse the data using statistical tools 5. Interpret the data drawing inferences 6. Draw summary and conclusions 7. Recommend and suggest improvements in the existing system

Presentation 1. Arrange the research results according to an approved reporting format 2. Get report typed and bound 3. Give the copies of the report to the concerned authority and discuss research results.

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MARKETING RESEARCH PLAN Once the marketing problem is identified and defined it is the responsibility of the researcher to chalk out a comprehension 2 plan explaining each step required to conduct the research in a successful manner. Following are the major steps required to be taken while preparing a MR plan :

1. Establish Research Objectives What are the objectives which the researcher wants to prove through the research? These objectives must be clearly highlighted before proceeding ahead with a research problem. Suppose, Hoechst India Ltd., intends to study in India the market potential for a new brand of pesticide it is introducing. This company has to determine the objectives of this study. Whether the company intends to find out the market potential through a direct or indirect method? What does it want to conclude through the market potential analysis? For answering these and a host of other questions the company research director must set the objectives for which the study is to be undertaken. Therefore, in any marketing research project it is essential that objectives are set beforehand. The research objectives must be hierarchical, quantifiable, realistic and verifiable.

2. Determine Type and Nature of Data Required Keeping in view the set objectives for research investigation, the next step required to be taken is determining the information requirements. Also the researcher must ascertain that which aspects of the problem at hand should be emphasised more while collecting and analysing the research information.

Generally, it has been observed that researchers have the tendency to collect all information or most of the information available on the problem in question. It is not a healthy practice because all the data collected may not be used in the research report. Thus, collecting of certain unneeded data may be a wasteful exercise. Suppose the researcher wants to explore the problem of "decline in sales" of a specific company's product. The researcher must try to ensure certain important reasons due to which sales might be falling. It may be due to faulty product planning, higher prices and lesser discounts to intermediaries, lesser availability of product on various sales outlets, or inefficient advertising and promotional policies.

All these aspects may not be responsible for sales decline simultaneously. But some of them are certainly responsible and must be ascertained to a greater degree of accuracy through judgment and past experience. Data on all the aspects may not be required to be collected and analysed, only the important aspects are to be considered for this exercise. This step of research plan leads the researcher to utilize his resources and energy on collecting the most pertinent information on the problem.

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3. Determine Possible Sources for Required Information Once the researcher has decided about the type of information, he should know the sources from where each data could be collected. If primary data is to be collected, he might have to select a sample from the study population. He must also decide whether personal interview, mail survey, or telephone survey be used for collecting survey data. Other methods besides surveys like observation and experimentation can also be resorted to depending upon the nature and type of information needed.

Secondary data, may be sufficient to conduct research and complete it. Therefore, a clear decision on sources of data is to be taken before starting research exploration.

4. Evaluate Alternative Sources and Select the Most Desirable If the decision on sources of data is taken, it is duty of the researcher to evaluate these available sources of data. For example secondary data sources maybe many, viz., Governmental commercial, MR agencies, marketing associations and others. It is to be decided whether internal company records are sufficient of the above mentioned sources should also be considered for data For primary data customers, competitors, suppliers, a may be the sources. Which one of these is the best source depends upon nature and situation of marketing problem at hand. Such sources must be reliable, accurate, and complete. Also cost and time required should be lesser as compared to other available sources.

5. Formulate a Research Plan in Complete Detail Once the data sources have been evaluated, it is duty, of the researcher to prepare a comprehensive plan combining sources of data, their evaluation, etc. All constraints in highlighted in the research plan.

6. Final Review of Research Plan Once the complete and comprehensive plan is ready, the should carry out a review of the resources and constraint whether the plan so formulated could be implemented and cost, time and effort needed to implement such a plan. If everything is O.K. it is advisable to proceed ahead with the implementation of the plan.

RESEARCH DEIGN

INTRODUCTION Fundamental to the success of any formal marketing research project is a sound research design.

A good research design has the characteristics, viz., problem definition, specific methods of data

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collection and analysis, time required for research project, and estimate of expenses to be incurred. The function of a research design is to ensure that the required data are collect they are collected accurately and economically. A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. It is a blueprint that is followed in completing a study. It resembles the architect's blue-print (map) for constructing a house. It maybe worthwhile mention here that a research design is nothing more than the framework for the study ensures that: (1) the study will

find out the

problem, and (2) the study will employ economical procedures. In he present chapter, an attempt is made to discuss various aspects of exploratory and descriptive research designs. The third form of design (experimental) shall be taken up for discussion in the succeeding chapter. Various other designs like historical, simulation, panel research, retail audit, image research, omnibus surveys, trade research, etc.,

There is never a single standard and correct method of carrying out a piece of research.

Therefore, do not wait to start your research until you find out the proper approach. Because there are many ways to tackle a problem—some good, some bad, but probably several good ways. There is no single perfect design. A research design is not like the solution to a problem in algebra .

There

are

three

basic

types

of

research

designs,

viz.,

(,i)

exploratory.

(ii) descriptive, and (iii) causal. The former two of these three are discussed in the ensuing text. The causal research design is discussed in the succeeding chapter of this book.

IMPORTANT POINTS Three important points about research designs are: 1. The design of investigation should stem from the problem.

2. Whether the designs are productive in a given problem setting depends on how imaginatively they are applied. An understanding of the basic designs is needed so that they can be modified to suit specific purposes; and 3. The three basic designs can be looked at as stages in a continuous process. Exploratory or formulative studies are often seen as the initial step in the continuous research process. It is shown here that these three research designs are not mutually exclusive and a combination of all the three could be used in the successful completion of a marketing research project.

We start with the exploratory and go to causal through the descriptive design. Alternatively, we can select any of these research designs and take the help of the other two designs if the problem in question needs.

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EXPLORATORY RESEARCH DESIGN All marketing research projects must start with exploratory design. This is a preliminary phase and is absolutely essential in order to obtain a proper definition of problem at hand. The major emphasis is on the discovery of ideas and insights. For example, a soft drinks firm might conduct an exploratory study to generate possible explanations. The exploratory study is particularly helpful in breaking broad and vague problem into smaller, more precise sub-problem statements, hopefully, in the form of specific hypotheses. In a nutshell, we can say that exploratory studies help in formulating hypotheses for the further research.

Importance of Exploratory Research Design Exploratory study can be used to establish priorities in studying the competing explanations of the phenomenon. The exploratory design is primarily used to define research problems whereas the descriptive and experimental designs are used to find solutions to these. The exploratory study is also used to increase the analyst's familiarity with the problem under investigation. The exploratory study may also be used to clarify concepts.

In sum, an exploratory design is used for any or all of the lowing purposes: 1. Formulating a problem for more precise investigation or for developing hypotheses; 2. Establishing priorities for further research; 3. Gathering information about the practical problems for carrying out research on particular conjectural statements 4. Increasing the analyst's familiarity with the problem; and 5. Clarifying the concepts.

In general, exploratory research design is appropriate for any problem in which a very little knowledge is available.

Exploratory study is characterised by flexibility and informality. Formal design is conspicuous by its absence in exploratory studies. Exploratory studies rarely use detailed (structured) questionnaires.

These do not involve probability sampling plans. Ingenuity, judgment and good luck play a part in such studies. Notwithstanding the flexibility, the research experience has demonstrated that: (i) literature

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surveys, (ii) experience surveys, and (iii) analysis of selected cases, are particularly productive in exploratory research design.

In the following text, we take up for detailed discussion each method of exploratory study:

1. Literature Surveys One of the most economical and quickest ways to discover hypotheses is the work of others, through a literature search. For tins purpose, a large volume of published and unpublished data are available which can be scanned in a relatively small period of time. More useful sources of such information are books, newspapers, government documents, trade journals, professional journals, and so on. These are available in libraries; company records such as those kept for accounting and sales analysis purposes; reports of previous research projects conducted; and data collected by trade associations related to tlie area of interest.

For example, problem for research in particular soft drinks company may be "sales are off, why ?"

For solving it, secondary data from the above sources can be analysed. These data may not be sufficient to solve the problem completely but will be of great help to provide a direction to further research.

2. Experience Surveys Individuals with expertise, knowledge, and ideas about research subject may be questioned.

Such people include top executives, sales managers, other relevant people of the company in question and companies making similar products; salesmen, wholesalers, retailers who handle the product or related products; and consumers who have used product of the type in question or have had an occasion to need such a product. This process does not include a scientifically conducted statistical survey. Rather, it reflects an attempt to get all available information from the people who have some particular knowledge of subject under investigation.

Unfortunately, because of limited experience with the problem at hand, lack of ability as observers, inability to express their ideas, and the most individuals are unable to give new insights into the marketing problem. Therefore, if time and effort are to be used economically, it is necessary to single out those individuals who are more imaginative and articulate in giving opinions. Despite the desire to find those individuals who have ideas, it is important not to concentrate the investigation only among the better educated and more articulate persons. Since the objective of an exploratory research is to find new ideas, it is important to give respondents the maximum possible freedom of response.

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3. Analysis of Selected Cases Usual pattern for exploratory research is the arbitrary selection of a few extreme examples and thorough analysis of these. In some instances, detailed and intensive case analysis of a few selected individuals or organisations may particularly be helpful in gaining ideas about possible relationships. Case studies are characterised by intensive study. Emphasis is placed on understanding the subject of investigation as a whole. A case study is regarded as a microscopic view of a company's problem from its historical and social perspective. For example, if the research goal is to determine the reason for varying sales productivity, the firm may wish to examine case histories of several of its best and worst sales people. The research goal in this case would be to determine if, for example, there were significant educational or age variations between highly productive and highly unproductive sales personnel. An exploratory research provides pattern of investigation, a relatively low-cost and low-risk form of a research that may pay very high dividends. The main benefit is a more clear picture of the problem.

In India, most of the researches such as market surveys to know the brand preferences, attitudinal studies of consumers, buyers' behaviour, market or sales potential, consumer awareness, etc., are of exploratory nature. Such projects are sponsored by big companies such as Hindustan Lever, Proctor & Gamble, Lakme, Ponds, etc.

SELF – EVALUATION QUESTIONS :

4. Most common and widely used primary data collection method is the ______________.

5. List out two types of research design.

6. Exploratory study is characterised by __________ and __________.

ANSWER : 4. Survey.

5. Exploratory descriptive 6. Flexibility and informality.

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DESCRIPTIVE RESERCH DESIGN Descriptive research design is also called explanatory design. This is the one that simply describes something such as demographic characteristics of consumers who use the product. The descriptive study is typically concerned with determining frequency with which something occurs or how two variables vary together. This study is typically guided by an initial hypothesis. For example, an investigation of the trends in consumption of soft drinks with respect to socio-economic characteristics such as age, sex, ethnic group, occupation, family income, educational level, geographic location, and so on; would be covered under a descriptive study.

Importance of Descriptive Research Descriptive design is used when the purpose of research is covered under one or more of the following points: 1. To describe the characteristics of certain groups, e.g.. users of a product with different age, sex, education, etc., 2. To estimate the proportion of people in a specified population who behave in a certain way, e.g., shopping persons who buy from a particular shop, 3. To make specific predictions, e.g., sales of a company product in each of the next five years, and 4. To determine whether certain variables are associated, e.g income and usage of a product.

An exploratory study is characterised by its flexibility and informality. whereas a descriptive study can be considered usually rigid and formal. A descriptive study requires a clear specifications of who. what, when. where, why and how aspects of the research. It requires formulation of more specific hypotheses and testing' these through statistical inference techniques. Despite its merits, the important fundamental weakness is : descriptive research does not find the cause and effect relationships among variables. Two basic types of research designs used in descriptive research are: case research design, and (i) statistical research design.

1. Case Research Design Case research is the most widely used formal research design. It can be carried out in the areas such as a survey of consumer attitudes toward a new product concept or it may be conducted in a library by the survey of available secondary data. But it is generally used for collecting cases. The collected cases are the typical studies generally used to find three features as follows: 1. Features which are common to all cases in the general groups;

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2. Features which are not common to all cases, but are common to certain sub-groups; and 3. Features which are unique to a specific case.

Case data are usually gathered in the field through either observation or personal interview method. Case data may be presented in either one or a two-dimensional format. Generally, analysis in case research does not use the sophisticated quantitative and statistical techniques. The stress is more on qualitative analysis of collected data.

Conclusions are drawn from comparisons and differences among various points. In some instances, the investigator is more interested in first two groups of above listed features, e.g., those that are common to all in a class and those that are common to all in a sub-class. In other instances, the latter two groups of features may be more important, i.e., those features which are common to a sub-group and those features which are unique to an individual case.

Thus, the case design of research is based on the specific objectives of a study and is primarily a question of sampling. If factors common to all items of group are sought then a representative group of cases from the universe of buyers might be selected. If it is desired to find what made some salesmen more successful than others, the design might include cases from two abnormal groups—successful salesmen and unsuccessful salesmen.

The chief/advantages of the case research are: (i) inferences are obtained from study of an entire situation as an entity rather than from a study of one or several selected aspects alone; (ii) a case study is a historical and microscopic description of a real event or situation, hence generates more data; and (iii) more accurate data are obtained.

Disadvantages of case research are: (i) it is difficult to develop formal methods of observation and recording; (ii) lack of objectivity is carried over into the analysis of case data; (iii) it does not lend itself to generalisation due to small sample; and costly, complex, and superficial in approach.

2. Statistical Design The statistical design differs from the case research with regard to the number of cases studied and comprehensiveness of the study of each case. While the case method involves complete study of a few cases, the statistical method involves study of a few factors in a larger number of cases. Since more cases are involved, the statistical method must use many different techniques of analysis—designed for mass data. Instead of comparing individual cases by analogy, this method attempts to identify individual cases and focuses instead; on classes, averages, percentages, measures of dispersion, and more

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sophisticated statistical techniques. It is from the use of these statistical tools for analysing quantities of data that the name statistical design is derived.

Survey methods, questionnaires, and observations are used in very comprehensive manner than used in case research design. The main advantage is that results can be generalised owing to wider samples used and inferences based on statistical techniques.

From analysis point of view, the descriptive studies are of two types: 1. Longitudinal analysis; and 2. Cross-sectional analysis.

Longitudinal Analysis (Panel Research) Longitudinal studies involve panels. A panel is a fixed sample of respondents from which information can be collected on a continued basis. The respondents in panels may be stores, dealers, individuals or other entities. A panel remains relatively cons time. There are periodic additions to replace drop-outs or main representativeness. The sample members in a panel are measured repeatedly in contrast to the one-time measurement evident in a cross-sectional study.

There are two types of panels. The oldest type relies on repeated measurements of the same variables.

In recent years, a new type of panel, called omnibus panel, has sprung up. In an omnibus panel, a sample of elements is still selected and maintained, but the information collected from each of the sample members varies. At one time, it may be attitudes with respect to a new product, while at another time, the panel member may be asked to evaluate me alternative advertising copy.

The distinction between the traditional panel and the omnibus panel is important. True longitudinal analysis can be performed only on the first type of data by repeated measurements of the same entities over time.

Suppose, presently we are subscribing to the type of service that generates consumer's purchase data. To keep the members manageable, assume there are 500 families in the panel. Suppose further that we are interested in determining the impact of a recent change in the package design of our Brand A.

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Let us classify all other brands in the single category, Brand B, and let us consider the performance of our brand at time period to before the change, and time period t1 after the package change.

2. Cross-sectional Analysis There are two types of cross-sectional analyses: field studies and surveys. The basic difference between these two is the survey and greater scope depth of the field study. The survey has a greater sample. The emphasis of survey is on the generatic of summary statistics such as averages and percentages and the relation of these summary statistics. The emphasis of field study is on the interrelationship of a number of factors.

The main advantages of field study are its realism, strength of variables, and heuristic quality.

A survey reflects surface analysis of the phenomenon though it represents large universe. Cost is also tremendous in survey.

The objective of cross-sectional analysis is to establish categories such that classification in one category implies classification in other categories. It involves counting the simultaneous occurrence of the variables of interest.

ALTERNATIVE RESEARCH DESIGNS Besides three distinctly identified research designs (viz., exploratory, descriptive and experimental), we have got certain variations of these known as alternative research designs. These alternative

research

designs

may

include:

(i) Historical designs, (ii) Simulation, and (iii) Combination of these two designs.

Historical Designs These designs deal with historical data and hence called historical designs. The data may be gathered by field studies but these refer to past happenings, events, or actions. These designs are experimental in nature because the data collected on the behaviour of one or more variables or environment represent actual experience. But they are different from experiments because (a) they are not the result of any manipulation or control carried out by the researcher, (b) they are gathered from secondary sources, (c) the researcher has to be content with whatever data are available. These designs are of three types: (i) regression analysis, (ii) trend analysis, and time-series analysis.

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(i) Regression Analysis In the regression analysis, effect of treatment on one variable (X—advertisement expenditure) is measured on other variable (Y— sales increase). Regression analysis is a statistical tool and is applied to analyse the relationship among variables from a historical data. Regression analysis attempts to uncover associative relationships between one or more variables and determine the defects of these relationships.

A detailed discussion on regression analysis is available later in this book.

(ii) Trend Analysis Trend analysis is similar to regression analysis except that here only one variable is used. If a variable is observed through a series of points in time, the dependent variables are the data series the independent variables are the points in time. For example, sales data for a given time period (5 years) can be plotted to determine the trend of sales. If the points are on the plot and connected, we have trend of sales. We can imagine a trend line fitted through the points that describes the way in which sales react to time. By extending the trend line, an extrapolation can be made of what sales would be in a future time period if they behave as in the past.

(iii) Time-series Analysis A time-series design involves obtaining data from the same sample (or population) for successive points in time. The common method of gathering primary data of this kind is to collect current data at successive intervals through the use of continuous panel. One may, however, obtain current and retrospective data from respondents during a single interview. Alternatively, secondary sources of data may be resorted to. Trend data are different from time-series data as they are gathered from statistically matched samples drawn from the same 'population over time. Current data are gathered from each successive sample.

Time-series are used to investigate the existence and nature of causal relationships based on associative-variation and sequence-of-events types of evidence. Generally, individuals or households are used as respondents but data are also collected from retail stores, wholesalers, manufacturers and other units.

Time-series design involve, at a minimum, one treatment and a subsequent measurement. At the other extreme, they may involve a large number of measurements with several interspersed treatments.

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Simulation Designs Simulation is an imitation of the real-world situation. Simulation is relatively a new technique for studying marketing problems, it does not include every possible variable and is simpler than the realworld situation which it represents. Simulation is an attempt to save time and money as compared to realworld studies. Here a model of (lie operational situation is constructed. The manipulation of such a model is called simulation. The technique is borrowed from the physical sciences where prototypes are used to test equipment such as aircraft.

The model depicts the functional relationships existing among the variables. Relationships among the variables may be depicted in mathematical function and/or probability distribution and are expressed in a computer model. With such a model, the researcher manipulates certain variables and measures their impact.

Generally consulting firms use simulation these days to solve one client's problem and using the same model for solving other clients' problems. Simulation may seek to find out the relationship between retail display, space and sales.

All simulations may not actually measure the variables in the real world. In such a case, the impact of a variables may have to be assumed from the real-world experience.

Simulation is a powerful design which has given us capacity (o process large quantity of data. Of late simulation is becoming a much more important decision-making tool for managers.

Assume that M/s Glaxo Laboratories (India) Ltd., Bombay, wanted to measure the effect of introducing music into its work areas on the output of its employees. Since company's entire manufacturing facilities involve a number of workshops with different activities performed in each, they decided to test the effect of music in few selected workshops. In this experiment the workers in the selected work areas formed the test units or independent variable. Piping in of the music is the treatment, and the increase in workers' output under these changed conditions is the outcome. Output is the dependent variable.

Experiments can be used in marketing when the researcher has established a hypothesis (for example, sales of a product X will be more due to Advertisement A as compared to Advertisement B).

Also the researcher must be in a position to control conditions pertinent to testing the hypothesis. It must be noted t both these conditions must be fulfilled before the experiment actually be started.

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USES OF EXPERIMENTATION Experimental designs have been used in a number of fields of marketing. Virtually, experimentation covers the entire range of marketing activities. Following are the areas where experiments are predominantly used.

1. Product Design Basic character, colour, shape and size are frequently studied by the experimenters. Which product a consumer would buy most under what typically changed conditions of quality, shape, size colour, etc.,

2. Package Design Although the package design, forms a part of production function of marketing and is discussed under the product design above. A vast number of experiments have been conducted to study package designs in relation to product sales. So a separate mention of this aspect is desirable. What colour, material (metal, glass, paper, or plastic), shape, etc., of the package should be used to increase the product sales, can be experimented in marketing research.

3. Pricing Policies The price elasticity of demand can be better tested with the help of experiments. Experiments are often used for measuring this aspect of pricing. It is commonly seen in magazine selling. Magazine (e.g., Reader's Digest) sellers frequently experiment by offering subscriptions at varying prices to different buyers on the mailing lists. It is visualised in the case of retailers also who test the effect of old prices "ten paise off sales" and "multiple unit discounts".

4. Promotion Policies The promotional policies have been very widely explored through experimentation as compared with the other areas of marketing. The experiments are conducted to test advertising effectiveness, media effectiveness, appeals, efficiency, copy and size effectiveness, frequency of repeating an ad, the effect of colour, etc.

The optimum frequency of call by a salesman is also frequently measured by experiments. Besides, the effect of various sales techniques is measured by experimentation. A large number of companies in India are using experiments to study effectiveness of various promotional policies.

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5. Distribution Policies Besides the above listed areas, distribution channel management, physical distribution management, and distribution system management also uses experimentation as a technique of research.

All the above listed areas can also be explored with the help of other research methods but the results are not as significant as by experiments.

LIMITATIONS OF EXPERIMENTATION 1. There exists a deficiency of a firm's theoretical base in marketing. Because most researches conducted at present are of theoretical or descriptive nature. The information required to formulate a hypothesis in such researches is not easily available.

2. The cost involved in the experimental research is more than in descriptive research. The data is collected continuously over a period of time from the same experimental groups which make the experimentation costlier than oilier methods of research. For example, test marketing of a new product is a form of experimentation that may make this method very expensive. It requires a lot of funds to introduce a new product into even a relatively smaller market. But the tendency is to test the product in a large number of markets to get more reliability and accuracy in results, so the method becomes tremendously expensive.

3. Close supervision and administration of the experiments are needed to carry on research effectively. People sometimes may not co-operate or intentionally manipulate the results which may give misleading conclusions. Experiments are more open to competitors that "one shot" surveys. Hence, they are more prone to competitors' created difficults in their successful completion. They may chart their strategies in accordance with the expected results and strategies from the experiments.

4. It takes a longer time to complete a marketing research experiment. Assume, a company wants to test its advertising effectiveness and releases an advertisement for testing through experimentation. But, for how long the experiment must run? Because it is not clear to anyone that after what time period the real impact of the ad will be felt on sales.

Despite waiting for a long time, it is not certain whether the results are really due to advertisements or some other factors might be playing on the environment which cannot be fully controlled, or remain constant for a longer duration of time.

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EXPERIMENTATION AND OTHER PRIMARY DATA COLLECTION METHODS Experimentation is really a special form of survey or observation method, since people are asked questions about some controlled situations or their reactions to certain controlled conditions are observed. Nevertheless experimentation differs in the one significant way from survey and observation methods. In experiments while generating and gathering data the researcher manipulates selected independent variables and measures the effect of these manipulations on the dependent variables. In the survey and observation methods, however, the information is usually obtained under normal or near normal circumstances, and the researcher intervenes only to gather data, but not to alter the environment.

Experimentation is the most conclusive of the research procedures. Also the data collected through experimentation is most authentic. It is viewed as "the hallmark of scientific research. This increased significance of experimentation in marketing may be attributed to the fact that most of the researchers are reluctant to accept the validity of any cause-and-effect statement' unless they have been verified by experimentation.

PURPOSE AND VALIDITY OF EXPERIMENTATION Experimentation can be used for two major purposes in marketing : (i) to explain the relationship that exists between certain variables; and (ii) to study the nature. of the changes resulting from the relationships. Since the business involves human activity in most situations and changes are caused in their relationships owing to which factors, is very complex to explain theoretically. So the latter type of investigation is usually undertaken by the marketing researchers.

Since experiments use results from samples and project them to the universe, these results must be valid both internally and externally. Is the experiment treatment solely responsible for the changes occurring, or do some outside and extraneous factors also influence these results?

If there are outside influences, what is their impact in total? If the results of the experiments are applicable to the real-world situations, we have to take into account the influence of extraneous factors.

There is hardly any use of an experiment conducted in perfect internal conditions if its results are not applicable to the outside world. For a broadly applicable study, we cannot assume "all things being equal (i.e., ceteris paribus) conditions for our experiments." Thus, we must carefully consider the influence of extraneous considerations.

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Introduction After identifying and defining the research problem and determining specific information required to solve the problem, the researcher's task is to look for the type and sources of data which may yield the desired results. Generally, researchers straightaway resort 10 survey method for data collection that is, they directly go in for primary data collection. But it is advisable that before going in for survey, the researcher scans various existing secondary sources for the required information. Only if these sources fail to yield the desired information then the ultimate resort, of course, is to collect primary data through various methods available for this purpose.

Whatever secondary data concerning the project are available must be collected before gathering the primary data. The process of secondary data collection and analysis is called desk research.

In a broader sense, we can say that two types of data are available to a researcher. These are: (i) primary data; and (ii) secondary data Primary Data are generated when a particular problem at hand is investigated by the researcher employing mail questionnaires, telephone surveys, personal interviews, observations, and experiments. Secondary Data, on the other hand, include those data which are collected for some earlier research work and are applicable in the study the researcher has presently undertaken.

To illustrate the difference between primary data and secondary data, we may assume that Mr. Mohan conducted a study in 1997 on "Effectiveness of TV advertising". In 1999 Mr. John conducted a study using survey method on "Advertising Effectiveness of ads in various media" and used some information from Mr. Mohan's study to reach the conclusions. Here the data collected through survey method by Mr. John are the primary data whereas the data taken from Mr. Mohan's study are the secondary data. Thus, the primary data in one research may take the form of secondary data if used in another research.

Often many researchers believe that a problem can be partially solved with the help of secondary data. Some secondary data are often available in one form or another in the existing sources. Therefore, it is worthwhile to use these first and only when the secondary data sources are exhausted, the researcher must turn to the collection of primary data. Efficacious use of secondary data can save both money and time of the researcher. But the use of secondary data in an effective manner requires a complete knowledge of the techniques of primary data collection. Otherwise, it may give rise to several problems. The researcher using secondary data must also know the fundamentals of primary data collection. If new products are to be launched, marketing research problems are concerning individual

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brands, proposals for new marketing policies, etc. Available secondary data may not be usable at all. The researcher has to seek primary data for all such new problems as they hardly have suitable relationship with the old problems, already explored. For all other problems which have a relationship with earlier problems, secondary data is a valuable resource for marketing research. Often, gathering of the primary data poses a lot of problems which can be reduced to a certain extent by using secondary data.

MERITS OF USING SECONDARY DATA 1. Economy and Time Use of secondary data in research is more economical than primary data. Primary data collection involves preparing of questionnaires for data collection, going to the field for actual collection, editing, coding and tabulating of data. This is a very complicated and tiresome exercise. Therefore, the prolonged and cumbersome process involved in primary data makes these very costly as compared to secondary data. Secondary data can be collected by the researcher single-handedly in libraries and through other static sources within limited time. On the other hand, collection of primary data may require much longer time. Thus, the money advantage also to companies the time and effort advantages in the case of secondary data collection vis-a-vis primary data collection.

2. Bias and Availability The secondary data are gathered by certain research agencies on occurrence of various events e.g., census data. These agencies collect such data for certain purpose. These data are not biased because the purpose of their collection is different than the objectives the researcher has in mind while collecting data for a particular research problem.

The primary data, on the other hand, are collected for meeting a specific objective and there exists a lot of scope for maneuvering these to suit the researcher's needs. Thus, the bias element is lesser in secondary data as compared to primary data.

Moreover, an individual researcher faces many difficulties while collecting certain primary data (such as data on sales, expenses, profits, etc.) from respondents like wholesalers, dealers, retailers, competitors, customers, etc. Whereas such data can be gathered by research agencies as their routine affair. The data gathered by research agencies are easily available to the researcher in published form.

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LIMITATIONS OF USING SECONDARY DATA The use of secondary data for research is not free from limitations. Following text presents the major limitations of secondary data :

1. Limited Applicability Finding data to suit a specific project is very cumbersome. Collection and use of secondary data requires a lot of hard work on the part of researcher. The secondary data may have three types of variations, which may hinder their use for the project at hand: (i) units of measurement may be different, (ii) definitions and data classes may be different, (iii) lack of currency, that is, data may be outdated (obsolete). To tackle these difficulties, the researcher has to make necessary alteration in secondary data to make these really suitable for use in the problem at hand.

2. Doubtful Accuracy It is difficult to find data of needed accuracy. Often, the available data are distantly related with the research problem at hand. It is difficult to determine their accuracy for the present project. Moreover, some secondary data may be wrongly collected or fabricated by the research agencies who originally collected them. Such data cannot be used for the present research project as their use would distort the research results.

To know the accuracy and reliability, an evaluation of the available data must be carried out. For this purpose, following aspects may be of great value to the researcher; (i) the data pertinence — that is, to which problem the data pertain and what relation these have to the present problem; (ii] the credibility of the investigator who gathered and published data—whether the field worker who generated and published such data is a reliable person; (Hi) what methods were adopted to collect data—whether an objective method was adopted which is scientifically correct, (data collected through observation can be more correct than the ones collected by questioning); and (iv) proof of carefully conducted and presented research work—whether the presentation is proper and whether the tables are properly constructed?

Whether conclusions are duly supported by the data?

Secondary data must preferably be collected from its original source which is called primary source and not from the second or third source which is termed as its secondary source. For example original census report is a primary source whereas newspaper report on census data is the secondary source for secondary data.

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DIFFERENT TYPES OF SECONDARY DATA Depending upon the gathering source, secondary data can be divided into two categories: (i) internal secondary data; (ii) and external secondary data. Let us explain each of the two categories in the ensuing text.

Internal Data Internal data is procured by a researcher in normal operations within his own premises. These data may include credit records, orders, shipments, sales results, advertising expenditures, detailed operating statements, general and developmental budgets, inventory records, transportation costs, raw material costs, previous research reports, etc. These are a few examples of secondary data internally available within a firm.

Internal secondary data are collected in many companies in such an unorganised fashion that even the researchers having proper knowledge of such data availability within the company, seek these from the external environment. This is due to the tendency of researchers to search for data from outside sources. Otherwise, these data can be gathered with a relatively lesser formal methods and lower costs.

Only thing required to know is: How the company is compiling and recording data which the researcher needs?

It is desired that firms should maintain their internal secondary data in a systematic manner. More and more Indian firms are realising the importance of inter-departmental co-operation for maintaining such records and reaping maximum benefits from the internal data. This realisation has led some firms to develop their formal information systems to record, analyse, evaluate, store, retrieve and disseminate such data effectively. Data banks are created in the firms having a good marketing information system to avoid unnecessary paper explosion and wastage of human energies in unwanted duplication of data files.

Under central data bank all the relevant data are stored in a central pool and managers requiring any data for decision-making make use of this data pool.

External Data External data are generated and collected from variety of events and sources outside the firm's premises. Tremendously large number of sources are available from which such data can be extracted.

Availability of such a large number of sources is really mind boggling. Thousands of books and

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periodicals are published every year in each country. Thus, one can imagine the number of sources of secondary data existing in the modern world.

Knowledge of use of indexes, abstracts, catalogues and directories is needed if a researcher wants to make effective use of the numerous sources of data available. Lot of time may be wasted if such a skill is lacking in the researcher. Many useful sources may never be found and consulted. The researcher has to seek "aids" to find the pertinent data.

The various external data sources can be divided into four categories. These categories are created on the basis of agencies making such data available to researchers. These categories encompass: i.

Governmental sources;

ii.

Commercial sources;

iii.

Industrial sources; and

iv.

Miscellaneous sources.

Searching External Data For searching external data, the researcher is required to use the available "aids" in a systematic and scientific manner. These aids include indices, abstracts and directories, An index and an abstract can be distinguished. An abstract presents the basic contents of a publication in a capsule form. Whereas, an index presents only the minimum data about a publication that- is restricting itself to indication regarding author, publisher, date of publication, etc.

For searching books and journals, card catalogues both subject wise and author wise are available for consultation in the libraries. If researcher has formed a list of books and journals in either of the above manner, the desired sources can be easily traced. Similarly, indices are available for locating newspapers and other publications in the libraries. Indices for statistics are also made available to the researcher. For any help, the researcher should go to the respective librarian who may in turn depute some of his assistants to trace the required information in the library.

Sources of External Secondary Data Government Sources These sources encompass: (i) Department of census; (ii) Central Government; and (Hi) State, district, taluk, block and Panchayat level government sources. The department of census carries infor-

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mation on census of population, housing, agriculture, business, manufacturers, minerals, industries, transportation, governments, etc. Major drawback of the census data is the gap of time between the collection of data and release of the information. Otherwise, these data are complete and exhaustive on all objects mentioned above.

The central government has departments on health, education and social welfare, industries, agriculture, housing, etc. The data are maintained and regularly updated by each of these departments.

So a researcher can procure some data from the Central Government Secretariat, New Delhi.

Similarly, the governments of each state and union territory have their secretariats at their capital cities. These maintain data regarding the state on various aspects commonly required by researcher. The district, block offices also provide respective information on their respective functioning. Further below in the hierarchy, Panchayats are maintaining some records having information on households, etc.

Commercial Sources Certain marketing research and advertising agencies such as Indian Marketing Research Bureau of Hindustan Thompson Associates Ltd., National Advertising Services (Pvt.) Ltd., ORG, MARG, etc., are engaged in gathering and providing information to the researchers and other business firms at some nominal prices. Information can also be sought and procured by researchers from these agencies at reasonable charges.

Industry Sources Indian Institute of Foreign Trade, for instance, conducts various researches and publishes results in its monthly, quarterly, and yearly periodicals and other publications. Similarly, several other institutes (I.M.M.'s, IITs, research institutes and Indian Universities) bring out their publications of varied periodicity in which data concerning different projects and problems is published. Besides, these institutes and universities have unpublished reports containing host of research data. There are professional and trade associations which publish different types of research data. For example, All India Management Association (AIMA), New Delhi, brings out its monthly journal entitled: Indian Management which carries a host of data usable in researches. Lok Udyog is one of the research journals of the Bureau of Public Enterprises publishing various data pertaining to the Indian Public Sector. Almost in each city, there is a local chapter (association) of the All India Management Association. These local management associations also publish their own periodicals of varying periodicity carrying information about local industrial and business problems. For instance, Ludhiana Management Association (LMA), Ludhiana Chapter of AIMA, publishes its quarterly journal entitled: Effective Management.

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Further, each industrial group (like bicycle, hosiery industry and parts manufacturers) has its own association which publishes data on common business problems, new products, and proposals concerning that industry as a whole. For example, cotton, jute. engineering, and various other industries have their associations and they are continually publishing concrete information on respective industry.

Big industrial firms are also engaged in publishing data concerning their internal operations and performance. Annual reports of individual firms is one of the examples of such publications made available to public. Besides, there are certain oilier general publications also useful from the researcher's point of view are published by several individual firms.

Miscellaneous Sources In this category, we include those researches which are completed by individual researchers, viz., dissertations, monographs, theses and others. There are certain good projects completed by individual research institutes and university departments.

Research abstracts are also published by some associations, universities and institutes, viz.. All India Management Association (AIMA) publishes Social Science Research Abstract in which summaries of different research papers are published. Indian Institute of Management, Ahmedabad, publishes abstracts of individual researches on management in its quarterly Journal Vikalpa. Researchers can have an overall view of research articles from these abstracts and can locate the particular journal in which the research findings are published.

Some libraries, besides books and periodicals, maintain records of data contained in various charts, reports, pamphlets, dissertations and monographs. These data are potentially useful from the different research points of view. Some libraries keep these materials containing data in a specially designed "Vertical File". The Vertical File Service Catalogue is also available in some libraries which give the indication that where a particular data source, of the above discussed ones, can be located in the library. We may start our search from bibliographic index of a library and then engage scanning into the various sources like books, periodicals, documents and miscellaneous and special sources concerning the project at hand.

In a nutshell, we can say that the secondary data is an important source of research data. These data are useful and contain rich information as compared to secondary data. There may be internal and external secondary data. The internal secondary data is collected from within the firm whereas external data are collected from various external sources, viz.. Government, commercial, industry and miscellaneous sources.

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PRIMARY DATA Introduction In the previous chapter, we have discussed various concepts and techniques concerning secondary data collection and their use in research. The present chapter attempts to discuss various concepts encountered by a researcher while collecting the primary data. The ensuing text discusses basic types of primary data, various means of collecting these data and different methods of their communication.

Though the secondary data are less expensive and can be collected within a shorter time period yet, these data do not solve the research problems completely. This may be due to different units of its measurement; different classes employed to report data, data may become somewhat outdated by the time of its publication, this data may not be adequately processed, it may not be sufficient and so on.

When these conditions prevail, the researcher's logical and ultimate resort is the primary data.

Types of Primary Data Primary data may pertain to demographic and socio-economic characteristics of the consumers, attitudes and opinions of people, their awareness and knowledge and other similar aspects as detailed below

SELF – EVALUATION QUESTIONS :

7. Descriptive research deign is also called __________.

8. List of the two research design.

9. ___________ Pertain to demographic and social – Economic characterizing of the consumer.

ANSWER : 7. Explanatory design.

8. 1. Historical 2. Simulation.

9. Primary data.

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Demographic and Socio-economic Characteristics One of the types of primary data of most interest to marketers is the subject's demographic and socio-economic characteristics. These characteristics include features such as subject's age, qualifications, occupation, marital status, sex, income, social class, etc. These variables are typically used to cross-classify the collected data. A common question asked by the marketers is whether the consumption of a particular product is related in any way to a person's (or family's) age, education, income, and so on. If yes, in what way? Of course, this is a market segmentation issue. Demographic characteristics are often used to delineate market segments.

Socio-economic characteristics are sometimes referred as states of being because they represent attributes of people. In order to collect data on socio-economic attributes of consumers, we adopt personal or telephone interview. Mail survey method is also used quite often.

1. Attitudes and Opinions Whether the consumers possess favourable or unfavourable attitudes toward company's products? To know this, an investigation is needed. The marketers are often interested in a person's attitude with respect to their specific brands and attitudes towards specific features of brands.

2. Awareness and Knowledge Awareness and knowledge as used in marketing research refers to what respondents do and do not know about some object or phenomenon. For instance, a problem of considerable marketing importance is the effectiveness of an advertising programme, say, in the form of magazine ads. One measure of effectiveness which is often used in product awareness generated by ad using one of the three approaches. Although all three approaches are aimed at assessing respondent's awareness and knowledge about ad. There is a definite increase in retention when knowledge is measured by recognition than by recall and by aided recall versus unaided recall. This, of course, raises the question: Which method is the "most accurate"? There are problems with each method.

The important thing to note for our purpose, though, is that when marketers speak, of a person's awareness of an ad, they are often focusing on individual's knowledge about the ad. A person is possessing "high awareness", typically knows a great deal about the ad.

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Table : Approaches Used to Measure Awareness 1. Unaided Recall

The consumer is given no clues at all but simply asked to recall what advertisements he/she has seen recently. No prompting is used. If prompting Is used, the respondent would have a tendency to remember more ads. in that product category.

2. Aided Recall

The consumer is given some prompting. Typically this prompting may be in the form of Questions about ads. in a specific product category.

Alternatively, the respondent may be given a list showing the names or trademarks of advertisers. Within the particular magazine issue along with names or trademarks that did not appear and he/she is asked to check those to which he/she was exposed.

3. Recognition

The consumer is typically shown an ad. and is asked whether or not he/she remembers having seen it.

The same kind of awareness and knowledge interchangeability occurs when marketers speak of product awareness. Marketing researchers are often interested in determining whether the respondent is: * aware of the product * aware of the product features * aware of where the product is available * aware of the price of the product * aware of the company making the product * aware of where the product is made * aware of how the product is used and for what purpose * aware of the specific distinctive features of the product.

3. Intentions A person's Intentions refer to the individual's anticipated and planned future behaviour. Marketers are interested in people's intentions primarily with regard to anticipated purchasing behaviour. Various aspects regarding intentions may be: • an indefinite intention to buy;

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• a probable intention to buy; • undecided; and • a definite intention to buy.

Intention receives a little attention in marketing than do the other types of primary data. This is true largely because there is often a great disparity between what people say, they are going to do, and what they actually do. This is particularly true with respect to planned purchase behaviour and actual behaviour. Purchase intentions are significant when a commodity with large money outlay is to be purchased.

4. Motivation For our purpose, a motive may refer to a need’s. want, a drive, an urge, a wish, a desire, an impulse, or any inner state of energies, activities, or moves (hence motivation), that causes, directs, or channels the behaviour toward goals.

A marketing researcher's interest in motives typically involves determining: Why people behave as they do? There are several reasons which explain this historic fact. In the first place, it is felt that a person's motives tend to be more stable than his/her behaviour. Therefore, motives offer a better basis for predicting future behaviour than does past. Second, if we understand a person's motives behind some behaviour, we better understand the, behaviour and, in turn, are in a better position to influence future behaviour or at least have offerings consistent with that anticipated behaviour. Thus, marketing research department is often interested in determining what a product can do for the users about his/her following needs: * Body—physical or physiological needs. * Abilities—self-asserting or self-actuating needs. * Moods—methods of satisfying needs. * Social relations—the social needs. * Aesthetic needs—the desire for beauty. * Knowledge—need to know or understand, * Safety—security needs. * Esteem—ego needs.

5. Behaviour

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Behaviour concerns what subjects have done or are doing. Most typically in marketing this means a subject's purchase and use behaviour of some product or brand. The focus on behaviour then involves a description of the activity with respect to various components. In particular, information is usually sought with respect to each of the topics contained in Table.

Table : Behaviour Checklist Purchase behaviour

Use behaviour

What How much How Where When In what situation Who Why

Consider "where" (one of the components) of Table for example. The "where of purchase" may be specified with respect to kind of store, location of store by broad geographic area or specific address, size of store, and even the name of store.

BASIC MEANS OF OBTAINING PRIMARY DATA Communication and observation are two basic means of obi, mining primary data.

Communication involves the questioning of respondents to secure the desired information using a data collection instrument called questionnaire. The questions may be asked verbally or in writing and the responses may also be obtained in either form.

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Observation does not involve questioning. Rather, it: means that the situation of interest is checked and the relevant facts, actions or behaviour recorded. An "observer" may be a person or persons. The data may be gathered using some mechanical device.

Communication and observation each have their own advantages and disadvantages. It is the purpose of ensuing text to review the "general" pluses and minuses—connected with each approach.

Communication method of data collection possesses the general advantages of versatility, speed and cost. Observational data are typically more objective and accurate.

Methods of Communication Methods of communication are many. There are various ways of classifying them. For instance, they maybe classified by their degree of structure, their degree of disguise, and by the method of contact.

These categories may include structured undisguised, structured-disguised, unstructured-undisguised, and unstructured-disguised questionnaires. Each of these categories is elaborated as follows:

I. Structured-undisguised Questionnaires Structured-undisguised questionnaires are the most commonly used type of questionnaires in marketing research. In the structured questionnaire, questions are presented with exactly the same wording and in exactly the same order to all respondents. The reason for-. standardisation, of course, is to ensure that all respondents are replying to the same question. If one interviewer asks, "Do you drink orange juice?" and another asks, Does your family use frozen orange juice? the replies would not be comparable.

In a typical structured-undisguised questionnaire the responses as well as the questions are standardised. This is accomplished by employing fixed-alternative questions in which responses of the subject are limited to the stated alternatives. Consider, for example, the following fixed-alternative question regarding the subject's attitude toward pollution and the need for government legislation controlling it:

Do you feel India needs anti-pollution legislation?

Needs more Needs less Neither more nor less

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No opinion.

The purpose of the question is clear and thus, undisguised. The greatest advantages are that it is simple to administer and easy to tabulate and analyse.

The reliability of a fixed-alternative questionnaire obtains for several reasons. First, the frame of reference in which the respondent is to reply is often obvious from the alternatives. For example consider the question, "How often do you watch TV? II no alternatives are supplied, one respondent might say: "everyday", another might say "number of hours everyday". Tliese responses would be more difficult to interpret than would an alternative form which included the response categories: "everyday", "at least three times a week," "less than a week", etc. This makes the frame of reference obvious.

The provision of alternative responses also often helps to make a question. The question "what is your marital status"? is more confusing than the question, "Are you married, single, widowed or divorced?" The provision of the dimensions in which to frame the reply helps assure the reliability of a question.

The disadvantages of this approach are: first, when "no opinion" choice is not included, respondent is forced to answer one of the other choices. Similarly, respondent's specific choice may not be there.

Overall, this type of questionnaire is most productive as replies are well-known, limited in number, and clear-cut. Thus, they are appropriate for securing factual information (age, education, etc.) and eliciting expressions of opinion about issues on which people hold clear opinions. Therefore, they are not very appropriate for securing primary data on motivation but certainly could be used (at least sometimes) to collect data on attitudes, intentions, awareness, demographic and socio-economic characteristics, and behaviour.

2. Unstructured-undisguised Questionnaire Unstructured-undisguised questionnaire is distinguished by the fact that the purpose of the study is clear, but the response to the question is open-ended. Consider the question, "How do you feel about pollution and the need for more anti-pollution legislation in India?" The initial stimulus (that is, question) here is constant. With it the interviewer attempts to get the subject to talk freely about his/her attitudes toward pollution. After presenting this initial stimulus, the interview becomes very unstructured. The respondent's initial reply, the interviewer's probe for elaboration, and respondent's subsequent answers determine the direction. The interviewer may have a rough outline in mind which he/she attempts to

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follow. However, the order of the questions and the specific framing of the questions will vary from interview to interview. The specific content of each of these so-called depth interviews will, therefore, vary.

The experienced interviewer through careful probing can extract the best response with this type of questionnaire. But such requirements are rarely fulfilled and if available, interviews are very expensive.

Good depth interview takes longer time to complete. If we involve more interviewers, there will be greater variations in responses due to difference in conducting the interview. A depth interview also causes severe problems in analysis. For interpretation skilled psychologists are required but their different backgrounds and qualifications may introduce bias. The subjectivity raises questions about both the reliability and validity of results.

A variation of depth interview is the focused group interview. In the focused group interview, a small number of individuals are brought together for an interview rather than being interviewed one at a time as in depth interview.

The major advantages of focused group interview over individual depth Interview are: (i) synergism (2+2=5 effect), (it) snowballing (chain of responses), (Hi) stimulation, (iv) security, and (v) spontaneity. There are some sponsored advantages besides the above mentioned respondent interaction advantages. Other advantages are: (i) serendipity (ideas may drop out of the blue and developed by group), (ii) specialisation, (iii) scientific security, (iv) structure is such that issues may be reopened by the interviewer who is one of the participants, and (v) speed with which the interview is completed is higher.

3. Unstructured-disguised Questionnaire Unstructured-disguised questionnaire lies in the hear of what is known as motivation research.

The unstructured-disguised questionnaire is developed when a respondent is not willing or cannot find words to express meaning to answer direct questions and his hidden motives remain unexpressed.

The researchers have attacked the problem of the subjects' reluctance to discuss their feelings by developing techniques that are largely independent of the subjects' self-insight and willingness to reveal themselves. The main thrust in what has become known as projective methods, has been that of disguising the subject of inquiry by using a disguised stimulus and presenting it in a very unstructured format, and thus, the label disguised-unstructured questionnaire. A basic principle underlying a projective method is that the more unstructured and ambiguous a stimulus, the more a subject can and will project

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his/her emotions, needs, motivations, attitudes, and values. The structured stimulus leaves very little choice. The subject has unambiguous choice among clear alternate fives. A stimulus of low structure has a wide range of alternative choices. It is ambiguous that subject can "choose" his/her own interpretation.

Thus, the basic assumption in projective methods is that an individual's organisation of a relatively unstructured stimulus situation is indicative of his/her basic perceptions of the phenomenon and reactions to it. While almost any stimulus can serve, some of the most common types of projective methods are: word association, sentence completion, and story telling.

Word Association With word association projective methods, the respondent is read a list of words to which he/she is to respond with the first word that comes first to his/her mind. The test words are dispensed throughout the list and are intermixed with some central words to conceal the purpose of the study. In a study of industrial pollution some of the key words might be: Water ...

Air ....

Lakes ....

Industry ....

Smokestack ...

City ...

The respondent's answers are noted verbatim and analysed by the tester for meaning. The responses are judged usually in three ways: by the frequency with which any word is given as a response, by the amount of time that lapses before a response is given to a test word, and by the number of respondents who do not respond at all to a test word after a reasonable period of time.

Word associations are analysed and individual's emotions, motives and interests are interpreted by similarity of words (e.g., favourable - unfavourable), similarity of responses (two respondents answering the same), and time elapsed (less than 3 seconds is accurate). Thus, the pattern of responses reveals the attitude of the respondent towards a product.

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Sentence Completion The sentence-completion method requires the respondent to complete a number of sentences similar to the following: Many people behave as if our natural resources are ...

A person who does not use our lakes for recreation is ...

The number one concern for our natural resources is ...

When I think of living in a city, I ...

Again the respondent is instructed to reply with the first thought that comes to his/her mind. The responses are recorded verbatim and are later analysed for their content.

One advantage of the sentence-completion over word association projective methods is that the respondent can be provided with a more directed stimulus.

There should be just enough direction to evoke some association with the concept of interest.

The researcher needs to be careful in this regard so as not to convey the purpose of the study or to create a condition for the "socially acceptable" response. Obviously, a great deal of skill is required to develop a good sentence-completion test or a word-association test.

Story Telling The story telling approach often relies on pictorial stimulus such as cartoons, photographs, drawings, etc. There are a number of tests available for use. One of these tests is called Thematic Apperception Test (TAT). TAT itself consists of a copyrighted series of pictures, some about ordinary events and some dealing with unusual events, some clear and others unclear, about which the respondent is asked to tell stories, i.e., whether he is impulsive or shows intellectual control in interpreting the stimulus or whether he is creative or unimaginative.

When used in marketing situation, in the similar fashion the respondent is asked to tell a story about the picture shown to him/her. Here, the responses are used to interpret the attitude towards a phenomenon or product rather than personality. Continuing with the pollution example, the stimulus might be a picture of a city and the respondent might be asked to describe: "What it would be like to live there?"

Then the response might be analysed in the light of attitude towards pollution.

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One of the classic examples of the story-telling approach involves "Nescafe" instant coffee. When women who did not use instant coffee were asked directly, "What do you dislike about it?" Most of them replied that they did not like the flavour. The investigators suspected that this might be a stereotyped answer that did not express the true reasons, and so they switched to a story-telling approach.'

A new sample of housewives was selected and split into two groups. Each of the group was shown the following list with Maxwell House Coffee replacing Nescafe coffee for other group of a hypothetical shopper and asked to tell story:

— Pound and a half of hamburger — 2 loaves of Wonder Bread — Bunch of carrots — 1 can of Ramford's baking powder — Nescafe instant coffee — 2 cans of Del Monte Peaches —5 Ib. potatoes.

Each housewife was asked to describe the personality and character of a women who shopped above products.

The evidence in table was interpreted as showing that the decision to buy or not to buy instant coffee was influenced as much by the prevailing social attitudes of, what constitutes good house keeping as it was by the flavor of instant coffee. Yet, the direct approach failed to uncover perhaps this subconscious, but certainly important posture.

Though the greater standardisation in unstructured-disguised questionnaire of the stimulus given the respondents represent a distinct advantage yet, the problem of replies remains. Final interpretation is biased because of different backgrounds and attitudes of interpreters. This shows that editing, coding and tabulation become difficult. They are edited to exploratory studies only rather than descriptive and experimental ones.

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4. Structured-disguised Questionnaires Structured-disguised questionnaires are the least used in marketing research. They emerged as an attempt to secure the advantages of disguise in revealing sub-conscious, hidden motives and attitudes along with the advantages in coding and tabulation common to structured approaches. The arguments supporting the structured-disguised approach typically rests on some proposition regarding the role of attitude in the person's typical and psychological make-up.

One proposition, for example, holds that an individual's knowledge, perception and memory are conditioned by her/his attitudes. Thus, in order to secure information about people's attitudes when a direct question would produce a biased answer, we can simply ask them:

What they know? Presumably, greater knowledge reflects the strength and direction of an attitude. For example, Janata voters could be expected to know more about Janata candidates and the Janata platform than would those intending to vote for the Congress (1). This argument is consistent with what we know about the operation of selective processes that individuals tend to: (i) selectively expose themselves, (ii) selectively perceive, and (iii) selectively retain those ideas, arguments, events, and phenomena that- are consistent with individual's beliefs. Conversely, people tend to avoid, see differently and forget those situations and items that are inconsistent with their preconceived beliefs.

This proposition would suggest that one way of avoiding the socially acceptable response in securing a respondent's attitude toward pollution and the need for anti-pollution legislation would be to ask the person: What he/she knows rather than asking individual how lie/she feels? Thus, the researcher might frame questions of the following types:

What is the status of the following anti-pollution legislation? A number of bills would be listed, some actual and some hypothetical, and the respondent would be asked to check the box best describes the current status of the legislation. The respondent's attitude toward the need for more legislation would then be assessed by the accuracy of his/her responses.

The main advantages of this approach emerge in analysis. The responses are readily coded and tabulated and an objective measure of knowledge is quickly derived.

In nutshell, we can conclude that these are a number of sources and methods of primary data. A researcher must adopt a particular source or method depending upon the objectives and needs of the research project in hand.

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METHODS OF RESEARCH Survey Survey is the most commonly used method of primary data collection in marketing research. This is widely used because of its extreme flexibility.' Also, it is the most abused method because many surveys are-conducted where questions are biased or poorly stated, interviewers are poorly trained, or the sample interviewed is not really of the population.

Survey research is a systematic gathering of data from respondents through questionnaires. The purpose of survey research is to facilitate understanding or enable prediction of some aspects of behaviours of the population being surveyed.'' A questionnaire is a formal list of questions to be answered in the survey. Questionnaire may be administered by mail, telephone, or personal interview

Survey Techniques Once the researcher has decided to use survey methods for collecting primary data, he should make a decision in connection with the techniques of survey or contact method, viz., personal interview, telephone survey, and mail survey. This can be done after evaluating each of these methods in view of the research project undertaken. The evaluation of survey techniques can be conducted by analysing the advantages and disadvantages associated with each of these. In the ensuing text, we take up for discussion each of these techniques.

Personal Interview In personal interview, the investigator questions the respondents in a face-to-face meeting.

Personal interviews may be conducted on a door-to-door basis or in public places such as shopping centers. The usual approach for the interviewer is to identify himself to a potential respondent and attempt to secure the respondent's co-operation in answering a list of predetermined questions. These answers may be tape-recorded or written down by the interviewer; Despite high cost, the personal interview can provide critical types of information on knowledge, intentions, demographic characteristics, attitudes, opinions, and life styles. In India, this method is very widely used and is considered as the most effective.

Advantages Main advantages associated with this survey techniques are: 1. It requires relatively shorter period of time to complete.

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2. Researcher can procure many different types of information.

3. The amount of information procured on each aspect is larger.

4. The results can be projected to the relevant universe with a greater degree of accuracy.

5. Because there is a personal interaction between the investigator(s) and the respondent(s), the data obtained are more reliable and valid.

Disadvantages Major disadvantages associated with the personal interview technique are: 1. The cost per completed interview is relatively higher as compared to other methods.

2. The investigator may have to face relatively more difficulties in administering the interview schedule.

3. Respondents may not be available at their homes, give biased responses, or even refuse to cooperate with the investigator.

4. The investigators themselves may involve in cheating which is very difficult to detect.

5. Time required is more as compared to other survey methods.

Telephone Survey In telephone survey, prospective respondents are telephoned, usually at homes, and asked to answer a series of questions over the telephone.

This form of the survey technique has become more popular in recent years in advanced countries because more people are having telephones at their houses In India, still this method does not find much use as many homes do not have personal telephone systems.

Advantages The telephone survey has advantages as follows: 1. It can be conducted at a lower cost as compared with personal interviews.

2. The interviews can be completed very quickly. Tims, speed is the most significant advantage.

3. Information of different types (on varying aspects) can be obtained.

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4. Telephone survey can be easily administered.

5. In this case also the results can be projected to a high degree of accuracy to the relevant universe.

Disadvantages Various disadvantages of telephone survey are as follows: 1. The costs involved are higher than the mail questionnaire.

2. The information on each aspect can be obtained to limited extent.

3. Visual aids cannot be used.

4. It is difficult to keep respondents on the phone for air length of time if the survey is not of keen interest to them.

5. The universe covered is generally incomplete because only higher income people have telephones.

6. Also the telephone directories which are used to select sample, might be obsolete.

7. It is not possible for the investigator to validate the information obtained and has to accept interviewee's word, particularly, on questions related to income, products owned, nature of residence, etc.

The most effective way to increase responses in phone surveys is to send a letter or card in advance notifying a person of the upcoming call and its general purpose.

8. The increasing desire among people to protect their privacy and enhanced rate and number of crimes may greatly inhibit me use of telephone surveys.

Mail Survey The most common mode adopted in surveys is to mail to each of the potential respondents a questionnaire, complete with instructions and a self-addressed stamped envelope. In tills case, no personal interaction occurs between the respondent and interviewer. Respondents fill out mailed questionnaires and return them duly filled in their conveniences Sometimes, mail questionnaires are distributed to the respondents by personal delivery or newspaper and magazine inserts but in most instances the entire process relies upon the mail system. The mail interviews have received the greatest

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amount of attention in India where the two earlier methods are quite costly for a researcher. Also, the time needed by the previous methods is comparatively more.

Advantages The main advantages of mail survey are as follows: 1. If a proper mailing list is prepared, all potential sample respondents can be reached.

2. There is no scope of the interviewer's bias to intrude in as the respondents are not influenced or inhibited by the presence of an interviewer. They are also more willing to answer somewhat personal questions.

3. The mail survey is relatively an inexpensive way to obtain information, especially when the potential respondents are spread over a wide geographical area.

4. There is a possibility of more accurate reply because the respondents fill up the questionnaires at their own leisure.

Disadvantages Major disadvantages of the mail survey are as follows: 1. Because in no mail survey 100 per cent response is received so the information may not represent the universe correctly.

2. It takes a pretty long period to obtain the responses back from the respondents; Sometimes, continuous reminders may have to be issued to the respondents for getting the response.

3. The mail survey has to use very structured questions and number of questions in the questionnaire have to be very limited. It may not be possible to tabulate answers if open-end questions are used.

4. Bias may occur when the sample chosen to be surveyed Is not really representative of the population.

Follow-up in the form of reminders must be used to increase the response rate. Advance notification, preferably on telephone, is effective in increasing the speed and rate of response.

Sponsorship by an official or respected agency, inclusion of stamped envelope, sending questionnaire by "special delivery" or "air mail" and inclusion of monetary incentives with the questionnaires are helpful in increasing the response rate. A major influence in obtaining a reasonable response to mail surveys is the quality of the accompanying cover letter. The cover letter should mention the purpose of survey, why the

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particular respondents have been chosen, and why they should participate. The sources of names most frequently used in marketing research in India, are telephone directories, city directories, membership lists of associations, and subscription lists of publications. This technique is also widely used by the Indian marketing researchers because of its cost advantage.

SELECTING A SURVEY TECHNIQUE It depends upon the research project at hand that which of the three above-mentioned techniques of survey is the best. There is hardly any set rule to choose the best method yet, a careful evaluation of the following seven factors serves as the criteria for selection of such a technique. These seven factors are: (1) cost, (2) speed, (3) accuracy, (4) amount of data gathered, (5) response rate, (6) flexibility, and (7) control. Let us discuss each of these factors in the ensuing text.

1. Cost The cost of conducting a personal interview are higher as compared to telephone and mail surveys. The increased costs of personal interviews are due to high transportation expenses of the interviewer and time devoted on each of the interviews. These costs increase because the interviewer has to move door-to-door for contacting the respondents. From the cost point of view, the mail survey is judged as the best. The telephone survey involves more costs than mail survey.

2. Speed Considering the time period devoted by the investigators in getting the response, it is observed that the personal interviews consume maximum time. Also in the case of mail survey, the investigator has to wait for a longer time period for getting the response. But the speed of getting response is the highest in a case of telephone survey which can be conducted within a limited period of time from a single control room. Thus, speed wise telephone survey is the best survey technique.

3. Accuracy There can be two kinds of inaccuracies which may creep into the gathered data. These are: (1) inaccuracies due to respondent's bias, and (2) inaccuracies due to interviewer's bias. The first type of inaccuracies may occur when the respondent is unwilling to co-operate in the interview and may consciously give biased replies. Replies to the same questions through personal interviews and mail surveys may be different because the respondents may tend to bias the answers with regard to sensitive questions such as use of deodorants, drinking habits, use of credits, etc.

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Also, in the case of mail surveys, the respondent may not be able to understand the question and misinterpret it while answering. Thus, the mail surveys are bound to be full of inaccuracies due to respondent's misunderstanding and misinterpretation of questions. Most of the questions concerning prestige and living standards are answered in an affirmative manner in the case of mail surveys than in personal interviews. This inaccuracy can be minimised in the case of personal interviews. Also, in the case of telephone surveys an attempt can be made by the interviewer to reduce the inaccuracies due to respondent. The interviewers are required to be well trained to reduce tli is type of inaccuracies.

There are inaccuracies which may occur due to interviewer's conscious or unconscious misinterpretation, style or tone of posing the questions to respondents. Such type of inaccuracies may also occur due to interviewer's intentional falsification of the interview results (cheating). These inaccuracies can be checked by training and motivating the interviewers after carefully recruiting and selecting them. An advance warning to investigators may prove to be better. The interviewers may be told in the beginning that their survey results will be checked by meeting some of the respondents. This type of inaccuracies are very common in the case of personal interviews. But there is no question of such inaccuracies in tlie case of mail surveys where personal interaction between respondent and interviewer is absent.

The summaries, both type of inaccuracies can be clicked by carefully selecting, training, supervising and motivating the interviewers.

4. Amount of Data Gathered The telephone survey elicits minimum amount of information. Because it is difficult to hold the respondent for more than five minutes on the telephone as it interferes with his/her home activities. The questions are required to be re-read and explained in telephone survey. In the case of mail survey, the amount of collected information is lesser because many people do not respond to follow-ups and reminders. Personal interview is certainly the best technique for eliciting maximum amount of information from respondents. This is because in a face-to-face meeting the respondents feel an obligation on their part to answer the questions asked. The respondents may spare a longer period of time to answer the queries of interviewer due to personal interaction with the latter.

5. Response Rate Response rate is described as the percentage of planned interviews that are successfully completed. We can also describe it as the sample size divided by completed interviews. The nonresponse may occur due to : (i) not-at-home, and (ii) refusals to co-operate.

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Table : Selecting a Survey Technique Sr. Criteria No.

Technique Personal

Telephone

Interview

survey

Most

Intermediate

expensive

expensive

2. Speed

Slowest

Fastest

Intermediate

3. Accuracy

Most

Intermediate

Least

1. Cost*

accurate

Mali survey

Least

accurate

4. Amount of data

Maximum

Minimum

Intermediate

Highest

Intermediate

Lowest

Most

Intermediate

Least

gathered F). Response

rate

'3. Flexibility

flexible

flexible

(i) Sample ** control

Intermediate

Worst

Best

(ii) Interview control

Best

Intermediate

Worst

(iii) Administrative control

Worst

Intermediate

least

* Where the sample is scattered on a nationwide basis. ** Assumes an accurate mailing list.

The response rate with different survey methods may vary from project to project. It may vary tremendously from 0 to 100 per cent. Generally, the response is the highest in the case of personal interviews, it is lesser in telephone surveys and the least in mail surveys.

6. Flexibility

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The personal interview technique is the most flexible. The interviewer in tills case can rephrase the questions to make these understood to the respondents. The interviewer can also use both sight and hearing senses whereas only one sense can be used in the case of telephone and mail surveys. The length of interview can be varied at the discretion of interviewer in the case of personal interview. Thus, the personal interview is the most flexible approach whereas the mail survey is the least flexible one.

7. Control Sample control, interview control, and administrative control are the three important control aspects in surveys. The sample control means the control over sample members and degree to which the sample represents population. In the personal interview transportation and time costs are immense. The telephone survey also cannot give representation to lower and middle income classes of population, since they often do not have telephones. It is only the mail survey which holds the best for representing a universe neatly. But mailing lists must be updated to include new respondents and remove respondents who have migrated to other places.

The interview control means the researcher's degree of control over the interview in progress.

The mail survey proves to be the most ineffective whereas there can be very effective interview control in the case of personal interview. In personal interview, the interviewer is in a face-to-face interaction with the respondent and can extract the maximum amount and accurate information by modifying certain questions and by establishing a better rapport with the respondent.

The administrative control refers to the degree of control of the research manager over the interviewer. Greater degree of control is possible in the case of telephone and mail surveys as compared to personal interviews. Research manager knows that what questions are asked, in what sequence and whether these are really asked; in both telephone and mail surveys. But in personal interviews which are conducted in the field, the research manager cannot exercise his/her proper control over interviewer.

He/she does not know clearly whether the interview is conducted properly or conducted at all. So the personal interview technique is the least controllable one from administrative control point of view.

Choosing Appropriate Technique On the basis of the above discussion, we can find that personal inter view holds maximum plus points and the second best is the survey. But it should be noted that no method can be taken as the best.

It depends upon of the project undertaken that which one o the three techniques will hold good. The

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summary of above discussion appears in Table 9.2 and which can be consulted to evaluate the techniques keeping in view the research project at hand.

SURVEY ADMINISTRATION Actually, effectiveness of a survey depends to a great extent on the design of a questionnaire.

But even more importance is needed to be attached to the administering of a carefully designed questionnaire. The ensuing text deals with the problems of administering surveys, in general and personal interviews, in particular.

Since there is a complete interaction between the interviewer and respondent, the interview may be regarded as a social process. A social interaction and communication takes place between the two. A carefully designed questionnaire may fail to elicit appropriate information if a socially congenial atmosphere does not exits while administering it. Social interaction among interviewer, questionnaire, and respondent is of more significance as depicted.

Mail Questionnaire Administration While administering a carefully designed mail questionnaire, a caution is to be observed that is sample control and response rate control must be used.

Sample control means a representative sample must be used for administering mail questionnaire. Response rate control refers to percentage of usable questionnaires returned by respondents.

Sample control may turn out to be the biggest problem in mail survey administration. Telephone directories, city directories, and mail panels are generally used for preparing population list. Care must be taken that these sources may not have turned obsolete in our highly mobile society. The mail panels (commercial list of persons who have agreed to answer mail questionnaires) may be an ideal choice.

Certain research organisations in India are adopting the practice of constituting and maintaining such panels. But it must be ensured whether these panels represent the population for the project at hand.

Sometimes, subscribers' list for a famous magazine like Illustrated Weekly, India Today, Business India, etc., may hold good but a care of its getting obsolete in the very near future may be taken. Suitable alteration (updating) must be carried out to adjust for "junk" subscribers.

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Interviewers' Problems The marketing research professionals generally have to face different types of interviewer problems. These problems are of personnel management involving problems of attracting, holding, and motivating competent research personnel. Since most field interviewers are relatively unskilled and poorly paid non-professionals, it is the responsibility of the marketing research professionals to see that they do a good job. Problems often occur here. Validity of the study will be seriously affected due to poor administration of questionnaire. No matter, how carefully the questionnaire is constructed and sound sampling technique to select units is applied. The problem of poor questionnaire administration severely affecting the results is owing to limitations on the part of interviewer which in turn are accredited to poor management. Various problems of this nature can be: (i) procurement of interviewers, (ii) training and development of interviewers, (Hi) compensating, motivating, integrating and maintaining interviewer, (iv) checking errors of interviewers, and (v) minimising the cheating by interviewers. Let us consider each of these problems in the following text.

(i) Procurement of Interviewers Colleges, universities, technical institutions, social science institutions, and research conducting firms are the major sources for obtaining qualified interviewers. They can be attracted through advertisements and holding in-campus interviews or higher wages to competitors or other firm's interview staff members. Usually, females are preferred over males because there is more acceptance for females especially in door-to-door interviewing. The interviewer should be healthy, extrovert, having agreeable appearance, good manners, perseverance, patience, etc., as personal qualities so that he can handle the respondent in a better manner. Thus, utmost care is required to be taken while recruiting and selecting interviewers.

If possible before making final selection psychological tests may be conducted to test aptitude for the viewing job. Some firms prefer to have part-time interviewers as higher effectiveness and accuracy of results can be expected from them.

(ii) Training and Developing Interviewers After careful recruitment and selection, the interviewers must be imparted proper training to handle the interview effectively. There can be three methods of imparting such training: written instructions (ii) training in person, and (iv on-the-job training. First, the interviewer should be given written instructions. Secondly, h should given training in classroom through interaction with training. Finally, he should be sent to the field for interviewing under the supervision of an experienced research investigator.

Whenever there are difficulties. The supervisor can guide the trainees.

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The interviewer should be taught: (i) how to establish rapport with respondents? (ii) How to accept refusals graciously? (iii) How to phrase questions nicely? and (iv) How to record answers properly? A list of do's and don'ts for interviewers is given in. This list can provide a key to successful interviewing. The list is simple but by no means exhaustive, yet provides a general content of a training programme.

QUESTIONNAIRE DESIGN Introduction Designing and implementing the questionnaires is one of the most interesting and challenging tasks of conducting marketing research. The problem facing a market researcher is to look deeper into the process of human communication and thinking. A researcher is motivated to design a questionnaire when he finds that the data he/she needs is not available in the secondary sources. He/she feels that the data pertaining to consumer attitudes, beliefs, demographic and socio-economic characteristics, opinions, feelings, past product experiences, and future expectations can be procured only through comprehensive discussions with them. Questionnaire designing also becomes important and necessary when he/she observes that unless the data during discussion or otherwise is not noted down, its basic form will be distorted. The questionnaire is the backbone for obtaining data during a personal interview, telephone survey, and mail survey.

In the ensuing text, an attempt has been made to distinguish questionnaire and interview schedule and then highlight the various steps involved in designing a questionnaire.

DISTINGUISHING QUESTIONNAIRE AND INTERVIEW SCHEDULE The term questionnaire refers to a self-administered process whereby the respondent himself/herself reads the questions and records his/her answers without assistance of an interviewer Although both these instruments are essentially question asking, and data garnering tools yet, an interview schedule is technically a list of indicative questions those will be asked from the respondent in person by an interviewer. The later will also record the answers given/ A questionnaire is more structured and standardised than the interview schedule. When put on a continuum, questionnaire and interview schedule take the forms as shown in.

Unstructured interview

Partially structured

Structured interview

Fully structured

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Interview

91 schedule

mail

schedule

questionnaire

Table distinguishes a questionnaire from the interview schedule. Although there is a comprehensive difference between me two yet. the term questionnaire is generally used in the succeeding text.

Table : Distinction between Questionnaire and an Interview Schedule Questionnaire

Interview Schedule

The term "questionnaire" usually refers to a

The term "Interview schedule" refers to a list

self-administered

of questions that will be discussed with the

respondent

process

himself/herself

whereby the reads

the

respondent in person by an interviewer who

questions and records his/her answers

will also record the answers given by the

without the assistance of an interviewer.

respondent.

Questionnaire is more highly structured

Interview schedule Is mostly unstructured

and standardised.

and questions are not standardised.

Questionnaire lacks flexibility in wording

In the case of schedule, the Interviewer

and sequencing the questions and hence in

wants He respondent to discuss in his/her

answering the questions.

own words and form his/her own frame of reference. Hence the flexibility is there.

There Is no scope of recording, rephrasing,

An interview schedule may contain definite

or rearranging the questions which arc

questions to be asked hut the Interviewer

fixed on the questionnaire.

may be allowed to reword, rephrase, or rearrange the questions according to his/her own judgment and situation.

In a questionnaire, there is choice of the

There Is lesser freedom to the respondent in

respondent to apply his own judgment and

answering but he/ she is guided by the

answer the questions as lie/she Hunks

interviewer according to latter's needs.

right.

Questionnaire Is meant for sending by mail

Interview schedule is meant for [personal

to the respondent.

administration by the Interviewer during an

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Cover

letter

carrying

request

and

Interview schedule does not need a cover

instructions to the respondents Is an

letter because interviewer performs the

essential characteristic of a questionnaire.

requesting and Instructing tasks.

DESIGNING THE QUESTIONNAIRE OR INTERVIEW SCHEDLE Assumptions While proceeding to design a questionnaire, two key assumptions t be followed are: 1. The researcher assumes that the respondent is able and willing to communicate the desired data either verbally to an interviewer or in writing on a questionnaire form.

2. The researcher must assume that the information he/she obtains from the interview and the questionnaire is essentially about the respondent's verbal or written behaviour.

While constructing a questionnaire or schedule, we must keep in mind two things: (i) objectives of the research project, and (ii) the respondent's point of view.

Questionnaire or schedule designing consists of five steps as follows: 1. Specifying data requirements.

2. Determining the type of questions to be asked.

3. Deciding the number and sequence of questions.

4. Preparing the preliminary draft of questionnaire.

5. Revising and pre-testing the questionnaire.

These five steps are the guidelines for designing a questionnaire and are generally applicable to both forms of question-asking instruments (questionnaire and schedule). With the help of these steps, a careful planning of the questionnaire design can be cai Tied out in order to avoid various costly mistakes.

Besides these five guidelines, a researcher must use his own judgment while designing a questionnaire so that necessary adjustment according to the project situations can be made. The above mentioned five steps are highlighted in the underlying discussion.

1. Specifying Data Requirements

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The researcher's first job is to ask himself/ herself certain questions and find suitable answers for them. He/she should ask himself/herself: What specific data will be necessary to test the hypotheses or establish relationships in which he/she is interested? What variables are to be measured? What relationships among variables are important in accomplishing the research objectives? In addition, the researcher must keep in mind the analysis he/she is going to conduct with the collected information. He/she must foresee: What kind of tabulation and statistical techniques will be used?

The researcher should see: Whether the population of the study is properly defined? Whether the population units possess the desired data? Will they be able to communicate to the researcher? Is there any other more reliable and economical way to get the required data?

The researcher must give a serious thinking to the and find answers. By answering these questions the searcher can put the research assignment at hand track and reap a host of benefits accruing due to this

2. Determining Type of Questions After specifying the required data, the researcher type of questions required to be asked from the respondents, to elicit this data. He/she must understand various ex questions and decide which of these would suit the n project situation. Generally, questions can be categories into direct questions, indirect questions, open-end questions, questions. The close-end questions may be dichotom choice, checklists, and so on. The choice of the type of questions depends upon the type of responses needed. In the foil shall discuss each type of these questions.

Direct Questions Direct questions are just what their name indicates. They explicitly ask for the desired data.

However, the directness of the question also relates to the way a response is interpreted. For instance dent is asked whether he/she bought Brand B on his/her last shopping and the research analyst is interested only in whether the purchase was made, then the question can be considered as direct.

A more direct approach that seems to penetrate the inefficiently barriers of direct questioning can be used when some personality characteristic is attached. According to this approach, we can ask; "How old were you when you first purchased Bra than asking: "Have you ever purchased Brand?" Alternatively a series

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of questions may be asked to ease the respondent into the topic area, allowing him/her gradually to reveal his/her experience.

Indirect Questions Indirect questions refer to those whose responses are used to indicate or suggest data about the respondent other than the actual facts given in the answer. When the respondent and interviewer do not share a common language for speaking about a concept; when the content of the question is somehow threatening to the respondents ego, prestige or emotional defenses when the question seeks to uncover data the respondent might perceive undesirably acceptable aspects of his/her personality is involved, an indirect approach is called for. For asking these questions, three techniques can be used as follows:

(i) The questions must be framed in terms of a generalised third person: For example, if the respondent is asked "Why do you think most other people buy Lux toilet soap?" The respondent can use the generalised "other" as a vehicle for expressing his/her own thoughts. Alternatively, we can refer to a hypothetical Mr. Mohan. In this manner, we can avoid a direct confrontation with the psychological barriers.

(ii) Seemingly direct questions must be asked: These questions may be relatively easy for the respondent to answer. But their answers must be interpreted according to some theory about which the respondent is unaware. This approach should be widely used in personality questionnaires.

For example, a series of questions on buying patterns may be asked and after combining the respondent's answers in some way to indicate his/her tendency to be an innovator.

(iii) Pictures, stories, or other ambiguous stimuli can be used: The .attempt here is to bring the respondent to project his/her own interpretation and meaning on a particular situation. This technique is frequently used by the motivation researchers to gain insight into the respondent's motives of which he/she himself/herself may even be unaware. These are called projective techniques and include various modes, viz., word association, sentence completion, story telling, ink blot test. Thematic Apperception Test (TAT), etc.

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Open-end Questions Sometimes these questions are called free-answer questions. As the name implies, this refers to a question that has no fixed alternatives (choices) to which the answer must conform. The respondent answers in his/her own words and at any length he/she chooses. A Verbatim record of the answer is prepared by the interviewer. For example, an open-end question on a study on "Orange Squashes" can be asked as: "What suggestions do you make for improving orange squashes?" In this case case no answer choice is given to the respondent and he/she may give any answer he/she thinks fit.

Commonsense suggests and reading tests have confirmed that short and simply structured sentences are more easy to be understood than long and complex ones.

Free-answer questions place greater demand on the ability of the respondent to express himself while answering. As such, this form of question provides the opportunity for greater ambiguity in interpreting answers. For example, in our earlier orange squash question, different types of suggestions may be given by the respondents and it may become difficult to interpret them. To con elude, in the case of free-answer questions, there is a high probability of the question being ambiguous, but the highest probability of the answer being ambiguous as compared to other type of questions.

In free-answer questions, the respondent uses his/her own frame of reference to answer and uses his/her own words pertaining to any aspect of the issue raised. The questions, of course may vary in actual degree of openness. For instance, "How much toilet soap is consumed in your household in a month?" This directs the thoughts of the respondent to a specific channel.

Different type of open-end questions can be asked in a variety of ways. They are often used as discussion openers on a topic. For example, "When you think of tooth decay, what brands of tooth paste come to your mind?" An answer to this question provides an insight into the frame of reference (number of brands perceived as salient and their identification) from which respondent's subsequent respondents will most likely be made.

Sometimes, when we ask suggestion questions (What do you think this company should do to better serve its consumers ?), we attempt to emphasise probe questions (What is its original colour and how does it change after wetting?) and follow-up questions (What was the result?) of the study. We may also ask reason why questions, e.g., Why do you feel that way?

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Closed-end Questions Such questions are also called fixed alternative questions. They refer to those questions in which the respondent is given a limited number of alternative responses from which he/she is to select the one that most closely matches his/her opinion or altitude. This facilities the respondent to answer in some other way, if he/she desires, an "other" alternative is provided as a choice. The response still remains closed, if viewed technically.

The fixed alternative questions may take the form of dichotomous questions, multiple-choice questions, checklists, and rating scales. Each of these types of questions have been illustrated the underlying text.

Dichotomous Questions A dichotomous question refers to one which offers the respondent a choice between only two alternatives, and reduces the issue to its simplest terms. The fixed alternatives are of the type: yes/no approve/disapprove, true/false, agree/disagree, favour/disfavour, right/wrong, and so on. For example, "Have you been to the beautyparlour during the last twelve months?" (i) Yes—- (ii) No—If yes, about how often on an average have you been to a beauty parlour during the last twelve months? — (a) more than once a week, (b) once a week, (c) every 8 to 15 days, (d.) every 16 to 28 days, (e) less often than every 4 weeks, (f) other answers please specify. This question is an example of dichotomous question, followed by a multiple -choice question. Dichotomous questions are used to obtain two types of information: (i) factual —information something is or is not, and fill recall knowledge—do you remember or do you not?

Multiple-choice Questions A multiple choice question refers to one which provides several set alternatives for its answer.

Thus, it is a middle ground between free-answer and dichotomous questions. Multiple-choice questions can be used, when an issue has more than two aspects, or when gradation, opinions, or degree of intensity is involved. For example, a question on a study on "Orange Squashes" can be: Why do you use brand A of the orange squashes? [Tick {^1) the appropriate answer.]

1

2

3

Reasonably

Used to and

Good taste

rely on

packaging

(Specify)

4 Good

5

Others priced

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The multiple-choice questions must be longer and more complex than either the free-answer or dichotomous questions, in order to state the several alternatives. The statement of alternatives assists the respondent in recalling and formulating his/her answer. The alternatives should be mutually exclusive (which is very difficult to do).

Checklists Checklist is simply a statement on a problem followed by a series of answers from which the respondent can choose. The checklist questions are put on show cards. For example. Show Card A may have checklist encompassing questions, e.g., (a) which of the products listed on this card do you think are a good value for money? (b) which products are mainly for older people? (c) which products are modern? (d) which products are expensive? and (e) which products have cut price offer?

Rating Scale A rating scale is a technique of attitude measurement. A rating scale may ask the respondent to rate a particular object along specified dimensions. A Likert rating scale for the question, "How would you rate detergent B on its comparative cleaning ability?"

Outstanding........ Above Average ........ Average ........ Below Average ........ Poor ........

3. Deciding Number and Sequence of Questions The number of questions to be included in a questionnaire depends upon the nature of research project at hand. Actually, the topic's depth or coverage required determines the number of questions. If the research project is complex, the number of questions needed is more. If many facets of the project are to be covered, number of questions would be more. If probe or follow-up questions are included, again there will be longer list of questions. Generally, a battery of questions is preferred to a single question.

In sequencing questions, two things are required: (i) sequencing various aspects of the topic to be covered and framing and ordering questions belonging to each aspect, and (ii) sequencing the presentation of questions in the overall questionnaire.

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A clearly defined beginning, middle and end of a questionnaire provides the respondent a logical anchor to cling. This also lends a sense of completeness to the questionnaire designing process. Easy and interesting questions must be given in the beginning. This attracts the respondent to participate in responding. Also such an arrangement is essential to build up a rapport with the respondent. The threatening or embarrassing questions must be delayed until the middle or preferably to the end portion of the questionnaire. This is done for two reasons: (i) interest and rapport have an opportunity to develop sufficiently to cushion the embarrassment or threat involved (if any), and (ii) if the respondent decides to terminate the interview, at least, some information has been procured.

Personal questions pertaining to income, education, prestige, social life, etc., must be asked at the end for the above given reasons. A few difficult or complex questions must be asked to gather confidence in answering before beginning with the personal questions. Embarrassing questions may be dispersed in the middle with other questions. A logical sequence must be followed in asking questions so that the respondent observes a feeling of meaningful exploration.

Researcher should start with the general questions and slowly move to the specific ones to avoid contamination of all the questions. Respondent's confusion, fatigue and frustration should be minimised at every stage of the questionnaire. Transitional statements informing mat the discussion is about to change, eases the respondent.

When the sequencing is such that the general questions precede the specific ones, the approach thus followed is called the funnel approach sequencing. This is so called because the scope of each question asked goes on narrowing down. Filter questions may be asked to get uninfluenced response due to cues and motivations. For example, "Do you feel that housewives who serve instant coffee are basically lazy?" and then ask, "Do you serve Instant coffee?" "Why do you think that most of the people do not buy instant coffee?" To be more effective, a funnel sequence approach called the "questionnaire" plan of question design, can be used. This approach specifies five types of questions to cover the essential aspects of an opinion: i.

Awareness of the particular topic is determined by a free-answer question;

ii.

Spontaneous attitudes are asked for next, again by a free-answer question;

iii.

Specific attitudes are then covered by fixed alternative questions;

iv.

Fixed-alternative questions are followed by free-answer probe or reason-why questions; and

v.

Finally, questions designed to ascertain the intensity of feelings expressed, are asked.

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Sometimes, one can use inverted funnel approach. This approach is specifically used when respondents know much about the product and lead us towards total product evaluation. Inverted funnel approach is just reverse of the funnel sequencing approach.

4. Preparing the First Draft—Wording the Questions The basic purpose of any questionnaire is to translate a specific objective into a form in which the researcher and respondent can communicate. But the language is often ambiguous as to the exact proposition which it indicates. Vocabulary and language used should be such that there remains no fallacy about the interpretation of a question. A question must mean what it says. The designer must see the questions from the point of view of the respondent who interprets them. Thus, meaning should be kept as simple as possible. Language used should be such that is shared both by the researcher and respondent.

The general rule is to word the question on a level that will be understood by the least sophisticated member of the sample population. But the appearance of oversimplification should be avoided. That is, talking down to the respondent should be avoided. While wording the questionnaire for preparing the first draft, following aspects must be kept in mind: Clarity of Meaning The clarity is the basic characteristic adhered to while constructing a questionnaire and particularly when writing the first draft. The problem is not only to use familiar words and phrases but also to use them in such a manner that the number of possible meanings is reduced. For example, word "fair" means just, honest, average, not bad, beautiful, courteous, and so on. So care must be taken to avoid such words which lead the question to a double-meaning. Thus, there is no scope for sling-slanging in a questionnaire. An example of a double meaning question is: "Detergent A is convenient to use and is more sanitary but is more expensive and harmful to the environment? What is your opinion about this detergent?" General rule is: ask one thing at a time.

Avoid Leading Questions Leading questions refer to one which makes it easier for the respondent to react in a certain way and is not neutral. For example, "Do you think government should coddle big businesses by providing taxbreaks to them"?

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Avoid Loaded Questions Loading refers to emotional feeling attached to particular words or concepts which tend to produce automatic approval or disapproval. The danger is that the respondent would react to the word or phrase than the question. For example, word "politician" may call different images than phrase "elected officials." Similarly, the brand name and the company manufacturing it have different meanings. An example of a-loaded question is: "Do you think that high phosphate detergents such as brand X are harmful to the environment?" Loading can occur in other manners as well. If the question invokes the status quo (...as it is now ...or should it be changed), responses might be influenced by the predisposition of the respondent to change.

Questions which involve prestige may also make biased response. For example, a woman's husband who "directs" customers at a bank's gate would be designated as director during the interview, if the lady (respondent) by mistake calls him "bank director" at the first instance. That means the lady will not give correct responses throughout the interview that is, a bias would intrude in answers for all the questions contained in the questionnaire. So the researcher must be careful while asking prestige questions.

Generally, people do not want to reveal their incomes and often exaggerate these. It is better to ask such questions by keeping the income into classes than asking in direct figures. For example, "How much is your monthly income?: (i) Below Rs. 10000, (ii) Rs. 10001 to Rs. 20000 (Hi) Rs. 20001 to Rs. 30000, (iv) Rs. 30001 to Rs. 50000 and (u) above Rs. 50000." Respondents feel convenient to tick either of such choices in a multiple-choice question rather than revealing income in direct figures.

Need to be Specific Do not ask questions which carry several interpretations. For example, do not ask a question like: "Do you go to movies frequently?" In this question "frequently" is used in comparison to whom? How often does "frequently" mean? Daily, twice a week, once a week, once a fortnight, once a month, and so on.

Frame of reference should be made clear by tying questions to the past experience or benchmark to facilitate judgments. That is, the respondent must be facilitated in answering by providing reference points. Reference points tell the respondent simply that what is desired and ensures his co-operation.

5. Revising and Pre-testing the Questionnaire Although re-examination, revision, and pre-testing of a questionnaire does not guarantee perfection, yet it can prevent to a great extent me loss of time, money, and effort due to poor design of

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questions. While re-examining a questionnaire five points must be answered. These are what, who, why, when, where, and how concerning a questionnaire.

The questionnaire once prepared and re-examined must be revised. The revision must be carried out with the help of a panel o experts. This is conducted to check and correct any fault still continuing, even after re-examination.

Pre-testing is carried out to test the questionnaire's preliminary draft with a small group of sample taken for the final study. Wording, number and sequencing of questions, choices for respondent information sought, and instrument clarity as a whole are the features of questionnaire which are needed to be tested. After discussions with various respondents new ideas may come to the mini of the researcher and those can be incorporated before launch in the questionnaire for the final study.

In a nutshell, the questionnaire design is a five step exercise which must be carried out cautiously by the researcher.

SAMPLING TECHNIQUES Introduction Regardless of the method used to obtain the primary data (experimentation, observation, or survey), the researcher has to decide whether the data is to be obtained from every unit of the population under study, or only a representative portion of the population will be used. The first approach, that is, collecting data about each and every unit of the population is called census method. The second approach, where only a few units of population under study are considered for analysis is called sampling method.

It is difficult to collect information about each of the population units as is done under complete census method. Owing to this difficulty associated with the census method or complete enumeration survey, we resort to the sampling approach. The sampling is a common activity in our day-to-day work.

For example, if a housewife has to see whether the pot of rice she is cooking is ready, she picks out a few rice grains and examines them. On the basis of these few rice grains she takes a decision whether the whole pot of rice is cooked. In this case, the housewife does sampling. Likewise in most of our daily activities, we unknowingly take help of sampling techniques for their effective performance. Thus, sampling is an important and all pervasive activity.

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The census method is having two main advantages, viz., in- , formation can be obtained for each and every unit of population; and secondly, there is greater accuracy in research results. The sampling techniques have got their own range of advantages such as: (i) reduced cost owing to a study of selected units from the population, (ii) greater speed due to smaller number of units to be studied, (iii) greater accuracy in results because more trained and experienced experts can be engaged in collecting data, (iv) greater depth of data occurs because more details about the unit under study can be obtained and, (v) preservation of units is possible for reuse in case of destructive nature of experiments.

Major disadvantages of the census method are many, viz., it is very costly, time-consuming and requires a lot of efforts and energy.

METHODS OF SAMPLING There are two main categories under which various sampling methods can be put. These two categories are: (i) probability sampling; and (ii) non-probability sampling. Each of these two categories has further classification as illustrated in the ensuing text.

Probability Sampling A probability sample is also called random sample. It is chosen in such a way that each member of the universe has a known chance of being selected. It is this condition—known chance—that enables statistical procedures to be used on the data to estimate sampling errors.' The most frequently used probability samples are: simple random samples, systematic samples, stratified samples, and cluster samples (multistage sampling). Let us explain these methods in the following text.

(i) Simple Random Sampling Under simple random sampling each member of the population has a known and equal chance of being selected. A selection tool frequently used with this design is the random numbers is a presentation of portion of such a table. For details readers may consult random number tables available in the market and statistics books.

Suppose Hindustan Lever wants to determine the attitudes of their salesmen toward their existing remuneration policies. Assume that there are 2500 such salesmen in the organisation and a simple random sample of 250 is to be used. The random sample selection procedure that might be followed

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would be to assign a number from 0 to 2499 to each salesman. Then a table of random numbers can be consulted using only four-digit numbers. The researcher is free to use a variety of methods to choose the desired quantum of numbers from this table.

In our example, we start with the first four columns and work downward. Only four-digit numbers below 2500 will be used from the table, so it requires a rather lengthy selection process. Starting at the top 4934' is too large so we ignore it. The next number is 0156 which is lesser than 2500 so we include it as one member of our sample of 250. The employee who was assigned that number will not be included in our sample. We do not run across another number lesser than 2500 until we come to 1883. This is our second sample member. This process is continued until a total of 250 numbers and the salesmen these represent have been chosen to complete the sample.

Lottery method is another random method for selecting the sample members. It is assigning each salesman a number, placing all these 2500 numbers (chits) in a container and then randomly drawing out 250 numbers. A major assumption of this process is that the numbers (chits) have to be thoroughly mixed-up within the container so that the sequence of numbers placed in the container may not affect the probability of their being drawn. After a number is drawn out, it is again placed back into the container so that the probability of any number being selected remains known and equal. Now computer programmes also exist which can be used to generate the desired quantum of random numbers.

Classification of Sample Design (ii) Systematic Sampling In this case the sample numbers are chosen in a systematic manner from the entire population.

Each member has a known chance of being selected, but not necessarily equal one. To illustrate this technique we can use our previous example involving the 2500 salesmen population be studied.

If such a list is non-existing or cannot be developed, neither systematic samples nor random samples can be used.

The advantage of this method is that it is more convenient to adopt than the simple random sampling. The time and work Involved in this method are relatively less. If the population is sufficiently large, systematic sampling can often be expected to yield results that are similar to those obtained by any other efficient method.

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The disadvantage of this method is that it is a lesser representative design than simple random sampling, if we are dealing, with a population having hidden periodicities. The major weakness of this selection process is that the system used may create a bias in the results. The every 10th item selected may come out to be a leader or captain. Thus, a bias may enter and study conducted may lack representativeness of the population. Another problem along these same lines is that a monotonic trend may exist in the order of the population list and thus in the sample.

(ii) Stratified Random Sampling A stratified random sample is used when the researcher is particularly interested in certain specific categories within the total population. The population is divided into strata on the basis of recognisable or measurable characteristics of its members, e.g., age, income, education, etc. The total sample then is composed of members from each strata so that the stratified sample is really a combination of a number of smaller samples.

In a study to determine salesmen's attitudes towards travel allowances, it is felt that attitudes on this subject are closely related to the amount of traveling done by each of these persons. Thus, a stratified sample could be used with "kilometers travelled per month" as the characteristic determining the make-up of the various strata.

The salesmen in each of these four strata would seemingly be more homogeneous in terms of their attitudes towards travel allowance than the 2500 salesmen in total. Thus, it is possible to increase the accuracy of the results by taking the sample from each stratum rather than using a sample selected from the entire population. The stratified sample will be a probability sample as long as the individual units are chosen from each stratum in a random manner.

It is important to realise that the use of stratified samples will lead to more accurate results only if the strata selected are logically related to the data sought. For instance, in the previous study placing salesmen in strata on the basis of their weight or colour of eyes would add nothing to the findings. On the other hand, using strata such as years of services with the firm or geographic area served, could be really meaningful. Stratified sampling can be classified into two categories such as (i) proportionate and (ii) disproportionate. These two types are discussed as follows:

(i) Proportionate stratified sampling : The breakdown of members per stratum can be done on either a proportionate or disproportionate basis. A proportionate stratified sampling is the method where

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the number of items in each stratum is proportionate to their number in the population. Since 10 per cent of the previous universe is composed of salesmen driving less than 200 km. monthly, this group will comprise 10 per cent of the sample. The same relationship between true for the other three strata.

(ii) Disproportionate stratified sampling: In certain cases composition of various strata is such that if a proportionate sample were used, very little data would be obtained about some of the strata." Let us assume a study is to be conducted concerning characteristics of car owners, with the type of car owned being the basis for Stratification. While there are a large number of Maruti, Ambassador and Fiat/Premier owners in most cities, there are relatively few Chevrolet, Toyota and Escort, Honda, Ford owners. Thus, if a proportionate stratified sample of 500 car owners is to be obtained in a typical city, there might be only two Chevrolet and four Toyota owners in the sample. Assume that Chevrolet owners comprise 0.5 per cent of car owners, while Toyota owners comprising per cent of the total.' With such a small representation, a could be learnt about the characteristics' of these two types car owners.

In this situation, a disproportionate stratified sample should t used. This means that in some of the strata the number of units would differ greatly from their real representation in the universe. A smaller number of Maruti, Ambassador and Fiat owners would be included the sample than their number in the universe warrants. Conversely, large number of Chevrolet and Toyota owners would be included.

A disproportionate stratified sample should be used when there appear to be major variances in the values within certain strata. With a fixed sample size, those strata exhibiting greatest variability are sampled more heavily than strata that are fairly the mogeneous. Thus, using a disproportionate stratified sample necessitates that the researcher have some previous knowledge about the population being studied.

Although stratified random sampling will almost always provide more reliable estimates than simple random samples of the same size, this gain in accuracy will often be rather small. This is also means the researcher has to weigh the additional time and effort involved in stratification against the additional accuracy obtained Statistical procedures exist for determining the amount of this gain. (iv) Cluster Sampling In this method the various units comprising the population are grouped in clusters and the sample selection is made in such a way that each cluster has a known chance of being selected. This is also called area sampling (multi-stage sampling). Experts interpret a cluster sample as the one where a selected geographical area state, district, a tauk. or a block) is sampled in its entirety.

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A cluster sample is useful in two situations: (i) when there is incomplete data on the composition of the population, and (ii) when it is desirable to save time and costs by limiting the study to specific geographical areas.

For example, if a study of consumers is to be made among households in Shimla city. Because people are constantly moving during different seasons, no up-to-date list is available on the composition of Shimla city households. Yet, if a researcher wants to carry out a probability study, every household must have a known chance of being selected in a sample. Cluster sampling meets this condition.

The total Shimla city can be divided into clusters on the basis Of municipality divisions or census tracts. Assume a total of 50 clusters were established which are felt to be reasonably similar in terms of residential characteristics.

Since in cluster sampling only a small portion of the total population is included, it is necessary to select certain clusters from the total group for further study. Each of the 50 clusters is assigned a number from 0 to 49. A decision then has to be made as to how many clusters will be included in the sample. If the researcher desires that total of six clusters be involved a table of random numbers can be used to select these six. If the six numbers selected from the table are 7, 18, 25, 29, 39 and 46, then these six clusters represented by these numbers would be included in the sample.

If the total sample size desired for our consumer study is 250 households. The selection of these specific sample members can be done in two ways : an equal number of households can be selected from each of the six clusters, i.e., about 42 or (ii) each cluster can be represented in the sample on a somewhat proportionate basis.

Another cluster sampling method is to assign numbers to each block of the six selected clusters.

No attempt is made at this time to count the households in these blocks. Certain number of blocks are then randomly selected from each area. The final step is to include in the sample every household of these selected blocks. This technique minimses the amount of data needed for sample selection since the only specific data required are the block breakdowns for the six clusters that comprise the sample.

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The major advantage of cluster sampling is that complete data about the population is not needed at the outset of the study. By constantly narrowing down the components of the clusters complete data on any one cluster can be postponed until the last stage.

Another major advantage of cluster sampling is that it saves time and money when personal interviews are used. Since the sample units are usually found in rather compact geographical areas, the interviewer does not have to leap-frog back and forth across a rather large geographic area.

The major limitation of this method is that it leads to a substantial loss in precision, since units within each cluster tend to be rather heterogeneous.

Non-probability Sampling In non-probability sampling, the chance of any particular unit in the population being selected is unknown. Since randomness is not involved in the selection process, an estimate of cannot be made; But this does not mean that the from non-probability sampling are of questional conducted their findings can be as accurate as probability sampling. The three more frequently used non-probability designs are: judgment, convenience, and quota sampling.

(i) Judgment Sampling A person knowledgeable about the population study chooses sample members he feels would be the most appropriate for the particular study. Thus a sample is selected on the basis of his judgment.

(ii) Convenience Sampling In this method, the sample units are chosen primarily on the basis of the convenience to the investigator. If 150 persons are to be selected from Ludhiana city, the investigator goes to the famous localities like Chaura Bazar, Field Gunj, Industrial P persons from each of these representative localities.

The units selected may be each person who comes across of 10 minutes.

The probability of the investigator's coming across of local people of respective areas is much more sending whole of the Ludhiana city. This is a major weakness of this method of sampling.

(iii) Quota Sampling

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In quota sampling the method is similar to the one adopted in stratified sampling. Here also the population is divided into strata on the basis of characteristics of population. The sample units are chosen so that each strata is represented in proportion to its importance in the population.

If 100 heads of households in Mumbai are to be interviewed for their attitudes towards a proposed city tax, the researcher may want to structure the sample on the basis of Suppose that 30 per cent of the Mumbai households have monthly income less than Rs. 10,000; 60 per cent have income monthly 10,001 and Rs. 50,000 and the remaining 10 per cent have income more than Rs.. 50,000. The sample of 100 households would then be comprised of 30 units from the "less than Rs.10.000” income category; 60 units from the "Rs. 1000 to Rs. 50,000” category; and 10 units from households with "incomes exceeding Rs. 50,000".

In the quota sampling, the units are selected on non-random manner while in the stratified sampling they are chosen on the random basis. The interviewer might go haphazardly to any residential area and interview people until desired number viewed. Thus in the selection process, each member of verse does not have a known chance of being chosen.

PROBLEMS IN SAMPLING Sampling encompasses data about only a portion of the universe. When a precise data on each unit of the population is needed, sampling becomes dysfunctional. For example, a state electricity board cannot take a reading of sampled number of households' meters for computing electricity bills to the whole of population of its customers. Similarly, a bank cannot check accounts of customers on the basis of average withdrawals on a particular day.

Even in those situations where sampling techniques are applicable, certain problems exist. These problems pertain to the fact that how well the sample represents the population from which it drawn.

There remain some discrepancies in accuracy and reliability of representation of population in the sample. These discrepancies are of two types: (1) sampling errors, and (2) and data collection errors. The influence of these two types of errors can be better shown by the formula: S = P ± es edc where s = sample value es = sampling error edc = data collection error

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P = true but unknown characteristic of population

Thus, the difference between the actual value of the character for the total population and the value estimated from the sample, measures the total error which again is split into es and edc.

1. Sampling Error Hardly, a sample is an exact miniature (representation) of the total population. The difference between the unknown values of population (parameters) and the values obtained from the sample (static) are sampling errors.

Let us take an example of a college students' study regarding how much of their total expenses are personally earned by students. Assume that in a city we take a sample of 400 students find after interviewing 400 sample students that 30 per cent of expenses are earned themselves by the students.

Now, let us interview each and every unit of the population. In this case, we reach a conclusion that 40 per cent of the total expenses are earned themselves by the college students. We see that there remains a discrepancy between the results from the sample and from the total population (difference = 4030=10%). This difference is not due to inappropriate sampling but due to the fact that the sample of 400 is not an exact miniature (representative) of the total population of the college students.

The size of these errors can be estimated and corrected in the results, if probability sampling is used. There exists no method for estimation and correction of sampling errors in non-probability samples.

2. Data Collection Errors In the data collection, there are certain errors which occur due to some unavoidable reasons.

These errors might be responsible for distorting sample values from the population values. These errors cannot be estimated and do not average out to the actual population values. These errors are of four types as discussed in the ensuing text.

(i) Non-response Errors In all studies, there exist some respondents who refuse to respond or are difficult to approach.

These respondents who do not participate in a survey may be distinct or unique and may affect the results of the study,

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(ii) Selection Errors Sometimes, the .procedures adopted for the selection of units of population are improper. There may be wrongly selected sampling frame or entire list from which sample units are drawn may wrong.

Such selection leads to questionable representativeness.

(iii) Measurement Errors These errors intrude into the study owing to the style questions are asked by the investigator or interpreted by the respondent. These errors may also be due to the wrong recording of data by the interviewer. Such errors may also affect result-s due to wrong editing coding or interpretation of data.

(iv) Prediction Errors Certain errors enter in the study due to the estimated or substitute data used to predict certain future activities. The researcher is compelled to accept such data because actual data may not be available All these errors can be rectified by proper training to the investigators.

Handling of Errors (es and edc) There are three methods to handle the non-sampling errors. It may be assumed that these errors would not be affecting study results to a significant extent.

Secondly, some statistical estimates of the size of these errors can be made and data can be corrected to that level. Thirdly, an attempt can be made to measure exactly the non-sampling errors by some follow-up study of the original one.

The sampling errors can be handled by estimating the size of errors by statistical method and applying this correction to the. sample. This correction is possible only in the case of probability samples.' No method of estimating the size of such errors exists in the case of non-probability samples.

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SELECTING A SAMPLE INTRODOCTION After having acquainted with the details of sampling methods and their strengths and weaknesses, we start a discussion on how a Sample should be developed or selected from a universe.

While developing and utilizing a sample for the research purposes, we have to take six steps as under: 1. Defining the population.

2. Developing a sampling frame.

3. Selecting the sampling method.

4. Determining the sample size.

5. Selecting the specific sample members.

6. Adjusting the estimated sampling error.

Each of these six steps has been explained in the ensuing text.

How Population is Defined?

The universe or population is the specific group of people, firms, conditions, activities, etc., which form the pivotal point of research project. For developing and using a sample, it becomes primary duty of a researcher to define the population from which to draw the sample.

The population can easily be defined in many of the projects. For example, a company manufacturing bicycles wants to study the attitudes of university students using bicycle as a mode of transportation. The population for this study is all the students enrolled in the registrar's office of a particular university.

In certain other situations. It Is pretty difficult to define population. For example, a study is to be conducted on the educational qualifications of teachers in Delhi, in this case, it is not clear which specific category of the teachers should be include in the study. There may be a university teacher, undergraduate (college) teacher, higher secondary teacher, high school teacher primary school teacher.

Which of these categories should be included in the population? Should all the categories or a selected few? Should a teacher running his school privately be included in the population? How about the people who are basically appointed for research but given teaching work additionally? So the question remaining

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unclear in this case is that who should be taken as a teacher for our research, to clearly define the population so that doubts of all type could be removed.

The researcher should also make sure that if the collected primary data is to be compared with the existing secondary data and the units of population are same in both the cases. For example, assume a study of housewives' purchasing habits in Mumbai city.

The secondary data of earlier investigations cannot be compared with the primary data of present study unless both the studies used the same definition for identifying and including a housewife in research project.

This is imperative that the population may be defined precisely so that the sample could be developed from this easily.

How a Sampling Frame is Developed?

After defining the population we start an exercise on the second step, that is, developing the sampling frame. A sampling frame may be defined as the listing of the general components of the individual units that comprise the defined population.)

Suppose a study of scooter owners is to be conducted in Delhi city. The frame in this case would be a list containing names and addresses of all scooter owners. We can procure such a list from the Government Secretariat at Delhi which maintains an up-to-date record to such vehicles for licensing purposes. This list is supposed to be very accurate because licensing is done on this basis.

Sometimes, the sampling frame may not be encompassing all the units in the population.

Suppose a study on poultry feeding habits of poultry farm owners in the Punjab State. The researcher may not get names and addresses of poultry farm owners who have not registered their farms with the Government’s registration authority. So the researcher may resort to those population units only which are registered with the Government's registering agency. But it is difficult to generalise results of this study for all poultry farm owners in the State.

Besides names of units of the population, the sampling frame must include addresses, locations, and set of rules by which a sampling unit can be distinguished with boundaries. Suppose, a fertilizer manufacturing company wants to test its fertilizer's efficiency with regard to crop yields. The sample units

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here may include fields. The sampling frame would be the set of coordinates used for selecting various agricultural fields.

It may be mentioned at this juncture that the steps, first and second are closely related. The selection and defining of population depends upon whether a clear sampling frame could be developed for such a population.

How a Sampling Method is Selected?

'There are two decisions involved in this step. First, Whether probability or non-probability methods of sampling is to be used. These methods have already been elaborated in the previous chapter. The choice of the sampling method can be influenced by me consideration, viz., (i) a probability sample must be used if the sampling error is to be estimated; (ii) a probability sample must be used if the research is required to defend the randomness in the selection of sample units; (iii) it is better to use nonprobability sampling when frame does not exist nor one can be developed; (iv) again, a non probability sampling technique should be used, if the researcher has limited knowledge about the statistical aspects of sampling;) and (v) sometimes the money and time constraints are so powerful that a researcher has to use non-probability sampling.

All these are not containing influences but these must be considered while deciding about the selection of a sampling method Irrespective of the final choice of sampling method it is to be defended by the researcher in his/her study results. There must confidence in the researcher that the sample chosen and utilize provides an accurate depiction of the population from which it was taken.

To summaries, that sampling method should be chosen which is scientific and best accomplishes the Study objective.

How a Sample Size is Decided?

In our earlier discussion, we decided about defining the popu1ation developing a sampling frame, and selecting a sampling method. Now we are confronted with the task of selecting the sample size. This task depends upon whether a probability or non-probability sampling method is used'.

This has already been emphasised that with the use of probability sampling techniques, the researcher is in a position to estimate the size of sampling error and adjusting in the result. If the sample size is large, the sampling error estimate becomes more precise. This puts the researcher in a fix. He/she

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wants, on the one hand, to select a larger sample to keep the estimate of sampling errors small. On the other hand, does not want the sampling costs to increase more than what is required. These two things confuse him/her. How to select a correct sample size? This the question which haunts the researcher's mind.

To solve this dilemma of the researcher statistical tool are used which enable him to choose the correct sample size. The techniques elaborated in this chapter are specifically applicable to simple random samples. For other probability samples, other different statistical tools are to be used which are beyond the scope of this book. For details of statistical tools, the readers must consult the basic statistics books. The broad concepts used here are the same and once these are followed by the readers, they would not face much difficulty in applying them for various other probability samples in selecting the sample size.

Probability Sampling The rest of this chapter deals with the statistical tools application for estimating sampling error and determining the sample size. The readers are supposed to have a good background on statistical mean, standard deviation, normal distribution, and variance. So the readers are again advised to go through an introductory statistics book which will make them clear of the concepts and applications which otherwise might be hazy in their minds.

The degree of precision desired in a given study must be established in order to select a correct sample size. To what extent the error can be tolerated in particular study must be ascertained. Once it is .known, it can be decided that how large a sample is required to meet the desired precision. This is described in the next. few pages of this chapter. The knowledge of the standard error of mean, standard error of the proportion, and confidence intervals is imparted to the readers, in order to tie together all this information and to show them how a statistically defensible sample size could be developed and used.

Non-probability Sampling The central limit theorem or the principle of normal distribution is not applicable in the case of non-probability samples because the probability of the members of population being selected is unknown.

It is the researcher's intuition and judgment which makes the decision about the size of the sample. The researcher makes this subjective decision by seeing that the size of the sample being selected is a replica of the population. The researcher generally goes for non-probability sampling because he/she has limited funds at his/her disposal for conducting the research. The non-probability samples can be selected

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and investigated at a comparatively lower cost. The size of the sample accepted generally is around onetenth of the total population.

But actual size varies from situation to situation and with the researcher's satisfaction that the sample is a true representative or depicter of the universe.

QUESTIONS : 1. Describe basic, applied, and designated data gathering types of research in marketing. What steps should be employed to carry out a basic research project?

2. Describe the process of research with the help of various steps involved in it.

3. Highlight various characteristics of good marketing research.

4. Give diagram describing various research process steps in detail.

5. Prepare a proposal of a research using various steps of research process for analysing consumer attitudes towards a toilet soap recently launched in the market.

6. What is a research plan? How is It different from a research design? Give various points to be considered in a research plan. Highlight various benefits accruing to researcher through a comprehensive research plan.

7. What is fieldwork? How would you carry out fieldwork for a MR problem of declining sale of readymade garments in the Indian market? What problems would you expect to face and how would you tackle these?

8. What is problem definition? What steps would you take while deflriing and understanding a research problem. What role do situation analysis and informal Investigation play in defining a problem?

9. "Research design is comprised of three steps in marketing research process". Explain this statement with suitable examples.

10. What is a sampling plan? How would you complete this activity in a marketing research problem?

11. What is a research plan? Describe various components of a marketing research plan.

12. How would you define a marketing research problem? How would you formulate marketing a research problem? How would you establish objectives for a marketing research problem?

13. What are the various aspects on which marketing primary data can be obtained? Discuss their relative significance.

14. What are the different types of communication modes which can be used to collect marketing

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primary data?

15. Why primary data is collected in marketing? How can this be collected?

16. Write short notes on the following : (i) Story Telling (ii) Word Association (iii) Sentence completion 17. How would you collect primary data on the following : (i) intentions

(ii) Motives (iii) Emotions (iv) Opinions (v) Attitudes

18. Methods of Primary Data Collection 19. (Surveys and their Administration) 20. Differentiate a questionnaire from an interview schedule.

21. What are different types of questions which the researcher a include in his/her questionnaire?

Describe each of these question giving suitable examples.

22. Prepare a questionnaire for studying the marketability of a hypothetical consumer product.

23. What steps are needed most in sequencing the questions in questionnaire?

24. Highlight the Importance of a questionnaire as a research instrument.

25. Give one example each of the following type of questions: (a) Leading questions. (b) Loaded questions. (c) Double-barrelled questions. (d) Fixed-alternative questions. (e) Open-end questions. (f) Rating scales. (g) Checklists

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UNIT - III PRODUCT RESEARCH Introduction Why "Promise" toothpaste of M/s Balsara Hygiene Products achieved the commanding heights in the

Indian

market?

Why

"Signal"

toothpaste

from

M/s Hindustan Levers Ltd., could not make a mark in the same market despite their best promotional campaign? Was it the effect of promotional campaign. The "Promise" with an unique selling proposition (USP)—(it contains clove oil which not only cleans teeth but also cures pain in the teeth). Why does in the same market one product fail miserably and other achieve the surmountable heights? Why "Bajaj" scooters are considered the best despite the availability of a number of scooters, namely, Kinetic Honda, LML, Scooty, and a number of other models? Is it all the promotional and pricing policies which are playing the major role? All the companies are ready to spend handsomely on promotion. They are also ready to have very intensive competitive pricing policies, yet something is playing a major part in getting me product accepted and developing a favourable image in the customers' mind. It is the product planning (branding, packaging, labelling, after sales service, product life cycle, launching a new product, systems selling, etc.) which makes the major difference if other things are kept constant. For this the product is to be managed effectively keeping in mind the customer needs, wants and values.

The term product research deals with the problems facing the product planning. These problems may include: new product development, modifications of the existing products immitating compertitors products formulating and implementing product life cycle strategies designing and evaluating packaging and branding strategiss after-sales service and warranty/guarantee poplicies and various other product planning-aspects. We will be more clear about the dimenstion's of the product research if we understand the meaning of the term "product". A product may be defined as "a complex of tangible and intangible attributes, including packaging, colour, price, manufacturer's prestige, and manufacturer’s and retailers services which the buyer may accept as an offering for satisfaction of wants or needs.

From this definition, we can understand that the product research encompasses various areas of product-mix such as colour and design of package, price of the product; promotional aspects which build an image of the company and product in the buyer mind; distribution channels and distribution system, and above all the attitude of the buyer towards the product with regard to satisfaction he gets from that.

So a firm interested in product research must take into consideration all the aspects concerned with the new product development, its modifications, product life cycle and various other product planning

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aspects. It is observed there various researches that firms in India have realised the importance of conducting research on various aspects of the product. This indeed is an encouraging development.

There is always a need for developing new and distinct. Aspects It is because of the fact that fickle consumers with evercharanging tastes dictate that companies should provide a steady stream new products. In conformity with consumers' demand for new products, marketing-oriented firms (a few in developing countries like India) are getting increasingly aware of the growing importance of product research in developing new product lines and expanding their existing product-mixes.

In the present chapter, we are concentrating on three major area of product research, viz., (i) new product research, (ii) product life cycle research, and (iii) research in branding and packs Each of these aspects has been taken up for discussion one in the ensuing text.

NEW PRODUCT RESEARCH The new product research is becoming increasingly significant because a huge amount is being spent on developing the new products. Secondly, the new products are failing very rapidly. At the same time, the successful new product development is becoming increasingly difficult to achieve. There are several reasons for this shortage of new products ideas, fragmented markets, increasing social governmental constraints. Costliness of new product development process, high rate of product failure, and shorter life cycle is getting successful products. Finally, the products life cycle is getting shorting owing to intense competition. It is observed that/the new products mainly fail because of inadequate market analysis, product defects, higher cost than anticipated, poor timing, competitive reaction, and inadequate marketing effort. Thus, it is essential that each of the steps required in the new product development is planned and implemented very carefully with adequate research information.

Also a sound organisational arrangement for new product research and development is very essential.

RESEARCH IN NEW PRODUCT DEVELOPMENT There are seven basic steps which are required to be investigated while developing and introducing a new product. These steps are: idea generation, idea screening, concept development and testing, business analysis, product development, test marketing, and commercialisation. Each of these steps has been explained in the underlying text.

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1. Generating Ideas This step deals with the generation of ideas on new products. A product idea may be worth lakhs of rupees or it may be worth zero, i.e., totally useless. In product research, first of all ideas are generated and evaluated to retain the better ones. The ideas can be generated by discussions with the customers, salesmen, competitors and firm's own employees, suppliers, dealers, shareholders, top management people, etc. These ideas may be generated through brainstorming sessions, morphological analysis, attribute analysis, and operational creativity. Other parties who are interested in business of the company may supply some valuable ideas. The researcher has to devote a lot of time in generating and evaluating product ideas.

2. Idea Screening After a lot many good ideas are developed, screening is done to retain the ideas which are better.

There can be two types of errors which a marketer may commit in screening product ideas: i.

Go error, i.e., retaining a wrong or worthless idea for new product development; and

ii.

Drop error, i.e., dropping a better product idea while screening the product ideas. To minimise these errors (these cannot be eliminated entirely), the market researcher has to proceed very carefully and cautiously during screening.

According to a study, conducted by Booz, Alien and Hamilton in 1968, out of 58 product ideas, generated, only twelve pass the initial screening, seven remain after a thorough evaluation of their profit potentials, three survive the product development stage, two survive the test marketing stage, and only one gets selected for the final commercialisation of the new product. This is shown diagrammatically in Figure NUMBER OF IDEAS SURVIVING

TEST MARKETING

ONE SUCCESSFUL PRODUCT FOR COMMERC1ALISAT

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Fig. : Steps in New Product Development showing the Decay Curve of Product Ideas.

The screening can be better conducted by the product research by specifying different attributes required in an idea and collecting information by asking a sample of consumers or raters to give per centage weights (marks) out of 100 marks to each of the product attributes. The product success requirements (attributes) may .include company personality and goodwill, marketing effort, R & D effort, personnel needed, finance needed, production requirements, plants location, facilities needed and purchase and supply requirements. This checklist of product idea rating has been shown.

The first column lists factors required for successful launching of the product in the marketplace.

In the next column management allocates weights to these factors according to their importance Thus, management believes marketing competence will be very portent (.20), and purchasing and supplies competence will be minor importance (.05). The next task is to rate the company's green of competence on each factor on a scale from 0 to 1.0. E management feels that its marketing competence is very high (.9) and its location and facilities competence is low (.3). The final is to multiply the relative importance of the success requirements by the corresponding levels of company competence to obtain overall single rating of the company's fitness to carry this pro| successfully into the market. Thus, if marketing is an important success requirement, and tills company is very good in marketing, this will increase the overall rating of the product idea. In ex ample, the product idea scored .72, which in the company's existence, places it at the high end of the "fair idea" level.

This basic rating device is capable of additional refinements; whether it is advisable to Introduce them, is larger a matter of how much more benefits would be gained. The purpose of the product screening might be missed if the devices become toe elaborate.

3. Concept Development and Testing After screening of ideas, the remaining ideas are developed into concepts of the products. For example, if we have an idea of developing a health drink. Then, we decide (while developing a concept on this idea): What sort of drink it will be? (a drink taken with breakfast, a drink taken with snacks, or a drink taken for nutrition purposes during any hour of the day). Who will be the consumers? (Old people, adults, children, or all). Whether it will be sold locally or nation wide? Several other questions of this nature are to be answered and concepts are developed on these lines.

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The developed concept, suppose a breakfast drink, is to tested by interviewing a sample of potential customers. A number of questions can be asked, viz.: How do you like the proposed product?

What improvement do you suggest? Would you purchase the product if developed on these lines? What price would you like to pay for it?, etc.

There should be technical testing as well as consumer testing of a new product concept. In the technical testing, the manufacturer technically compares his product with the analogous competitors' product.

Basically, there are two phases: (i) analysis testing, and (ii) performance testing. The analysis testing attempts to visualise: what a product is? This test may be carried out by analysing the composition of the product to see what raw materials are required to be used and exactly how the product is to be assembled out of various raw materials or component parts. Performance testing refers to what the product will do? Perfom testingjnyolyes stimulating products' use conditions. In India generally speaking the technical testing is emphasised more as compared to the consumer testing. This is the practice in the majority of business organisations in India. Technical testing is of course essential but is not always sufficient. We have to gather and analyse more information on customers' needs and wants and satisfaction.

Consumer testing is carried out to find consumer's attitude towards a product thought or product concept. The underlying assumption in this tested that only consumers favourable products concepts will be converted into new products. This may not always. This is the major drawback of consumer testing consumer testing is of two main types: (i) concept testing, and (ii) pretesting the product. The concept testing is already discussed in the commencing part of this section. The pretesting of the products will be taken up for discussion under step 5 of the new product development in the ensuing text. Besides the concept testing, the concept should also be tested from positioning point of view positioning, various competing brands are plotted in a tow-rent graph, taking in view the most important features of the products. Also the ideal point of consumers is kept in mind determining the product and brand positioning, An ideal point is one where the preferences of the most of consumers concentrate.

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The graph is shown in Fig.

EXPENSIVE A PRODUCT C PRODUCT

SLOW B PRODUCT

QUICK 0—IDEAL POINT NEW BREAKFAST DRINK INEXPENSIVE

Figure: (a) Product Positioning Map (Breakfast Drink Market).

4. Business Analysis In this stage, the costs, sales and profits are estimated for the new product. As the new product data are not available, therefore the exact computation of costs, sales and profits cannot be carried out.

We can take data of an analogous product (corollary product), and apply those data to estimate the costs, sales and profits of the new product. This sounds easy but researcher has to collect and analyse a host of information to reach certain conclusions in this respect.

A reliable model for sales estimation is to be determined. These models differ depending upon whether they are designed to estimate the sales of a one-time purchase product, an infrequently purchased product, or a frequently purchased product. An attempt

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HIGH PRICE PER KG BRAND A BRAND B

LOW BRAND C

BRAND D HIGH

PROTEIN

PROTEIN

CONTENT

CONTENT •

IDEAL POINT

•

NEW

•

BREAKFAST DRINK BRAND

LOW PRICE PER Kg Figure: (b) Brand Positioning Map (Breakfast drink market). should be made to estimate the first-time sales by determining market potential and share of the competitors. Thereafter, we have to estimate the replacement or repeat sales. It is important to find whether the repeat-purchase ratio is likely to rise or fall. Finally the researcher must find out the data to estimate future costs and profits. This can be carried out by considering the profit equation, total demand equation, and market share equation. In principole, the last two equations are substituted in the profit equation and calendars can be used to find out the profit-maximising mar programme.

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5. Product Development A prototype of the product is developed on the ideas which are retained after the business analysis. The prototype so developed is tested (pretesting). Three major product aspects are investigate and finalised in this stage, namely, branding, packaging, and positioning.

SELF – EVALUATION QUESTIONS :

1. Product research deals with the problems facing the ___________.

2. List out two major area of product research.

3. Retaining a wrong idea for new product development _____________.

Answer : 1. Product planning.

2. 1. New product research. 2. Product life cycle research.

3. Go- error.

Branding A brand name which is easy to pronounce, shorter in spelling attractive, and associated with the meaning of the product is selected. Branding can be conducted after consulting a sample of customers of the company's existing products or potential customers of the new product. They may be asked whether they like this new brand or not. The information is analysed. On this basis brand name the product are finalised. Various tests which can be conducted test the soundness of branding policy are: (i) association tests –to about the present brand name; (2) learning tests—to collect information on ease pronounching the brand name; (3) memory tests to know whether the name is easy to remember; and (4) preference tests—to know which one of several names are preferred what basis. The decision is also to be taken on the basis of data whether the individual or family brand names would be successful and what strategies would be the best.

Packaging Regarding packaging of the new product also the potential customers are contacted by the researcher and asked which colour, size, design and style of the package they like most from among the

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available ones. Then the most liked package colour, size, design, and style is used for the new product.

These packaging features must be guided by decisions on pricing, advertising and other marketing-mix elements. Also the respondents are asked whether they would like to have a convenience packaging or promotional packaging. Finally, a package is selected after evaluating the information. Factors such as self-service in supermarkets and discount houses, consumers' affluence (consumer's readiness to pay'a little more for convenience, appearance, dependability, and prestige), Integrated marketing concept and innovational opportunities account for the growing recognition of packaging as an independent and potent selling tool. These factors must be taken in view in product research. Before finalising the package design various tests such as engineering tests (strength of the package), visual tests (legibility and harmomousness of script), dealer tests (ease an^l attractiveness to handle) and consumer tests (favourable consumer reaction) are required to be conducted to know the effectiveness of the packaging. hus the best package is selected.

Packaging Another aspect which is worth consideration in product research is to decide the strategy to position the product in the market in view of competitors' products. All the marketing-mix elements, viz., price, promotion and place are to be considered with regard to the product while formulating a positioning strategy for the product. The niche which the firm thinks appropriate for the new product is finalised in view of competitive situation. The basis for positioning is the same as discussed earlier. For this both the product and brand positioning maps are to be drawn and analysed.

6. Test Marketing Test marketing refers to testing the new product marketing plan on a miniature basis by introducing the product into a few selected markets. This is done before the product is finally launched for the purpose of commercialisation. We make the assumption that t marketing results will be projectable to the entire market for commercialising the product. This assumption may not hold true in many cases because a company cannot hope to estimate profits for the entire market on the basis of estimated sales and expenses in a selected group of markets. This is because a large number of variables maybe involved which make it difficult to determine causal relationships between profits and other involved variables.

It may be creditable to mention here that the test market is not used to determine the acceptability of a new product. Only those products are put to market tests which are already having a strong evidence of their successful acceptance. The primary aim is to improve the knowledge about the potential product sales. It also helps in pre-testing alternative marketing plans. The test may also discovering the' product

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fault which escaped attention in the development stage. The test helps in distribution channel and provides deeper understanding of various market segments.

Market testing is used as an aid to capital budgeting a market planning. Market testing may provide answers to various questions as given below: •

How large a plant is needed for national sales?

•

Which cities should be selected to run the test?

•

What should be the optimum expenditure on product

•

What amount of expenditure be incurred on marketing efforts to produce the desired sales volume?

•

What would be the return on investment?

•

What time period is required to run the test?

•

What specific information should be collected during test?

•

What action should be taken after the test?

First step in test marketing is to develop a test market plan. Whether the product will be tested into the sampled cities all over the nation or in a few cities nearby the plant? A proper developed test marketing plan helps in developing the appropriate test design and carry out the necessary control.

The major decision in test market (as mentioned in the questions above) may include the number of cities to be selected for testing the product, the length of time for which the test should run, the type of information to be taken gathered, and the act taken on the basis of test marketing results.

Generally, it is advised that metropolitan cities (such as mumbai, Delhi, Chennai, Calcutta) should be selected for test marketing. But this depends upon the objective and capacity of a firm that how much market share it intends to capture in the national market as a whole. Small firms may run the test only in the particular region (a few cities) whereas the large firms may run the test at the national level (several cities). Each company develops its own city-selection criteria. The rural markets can also be selected besides urban markets for testing the product.

The test may run anywhere from a few months to several years. Firms should run the test for an average repurchase period that is when the customers start purchasing the product second time after

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they consume the first free sample, product purchased in special deals, or after an impusle purchase. The firm should keep in mind that the test should not become so long that the competitors by that time grab the market share. Also the cost of administering the test will go on increasing and accumulating if it is run for longer period of time. Some Indian companies are now becoming too ambitious in connection with the test marketing but proceeding ahead without solid information and conclusions may also prove selfsuicidal.

Information to be gathered during the test must include product-shipment data, store and its data, consumer panels data, buyer's survey data, trade attitudes data, retail distribution data, and the data on effectiveness of advertising, promotion, and point of sale material. In general it may be indicated that if a company collects more information on the pertinent aspects of the products, its decision making on product evaluation will tremendously improve.

On the basis of information collected, the company can decide the future of the new product on two factors, viz., trial rates and repurchase rates. If both trial rates and repurchase rates are high, it is better to go ahead with the commercialisation of the new product. When there is high trial rate and low repurchase rate that indicates mat the consummers are not satisfied and product either be redesigned or improved. If there is a low trial rate, and high repurchase rate then the product seems good but more people should be influenced to purchase it.

If both market shows a low trial rate and a low repurchase rate, the product is not at all good and should be abandoned, otherwise it would fail in the market.

Test marketing is the crucial stage in new product development. If it is planned carefully and investigated thoroughly, a company can make very fruitful decisions on commercialisation of the product, or on dropping the product. Any carelessness at this stage may lead a company to a huge loss of funds and effect its employees' morale vigorously. Therefore, the pertinent information should be systematically collected and analysed on various aspects of the test and conclusions should be drawn effectively.

Alternative Actions Following the Test-Market Results Trial Rate

Repurchase Rate

Action

High

High

Commerclaltse the product.

High

Low

Redesign the product or drop it.

Low

High

Increase advertising and sales promotion

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Low

128 Drop the product.

7. Commercialisation At the launching stage, the company should finalise all the attributes and package design for the new product. It should start producing the product at a large scale after making investment on the necessary machines, equipment and facilities. Dealers and sales personnel must be recruited, trained, and motivated systematically advertising and promotion programme should also be effect chalked out for this purpose.

Advertising and promotion programme needs a large in investment in the beginning, at least for the first one to two years. Funds required for various other programmes of commercialisation as listed above are so huge that all the previously discussed steps of new product development get dwarfed as compared with these in the commercialisation stage.

Product is launched slowly and smoothly but operation becomes larger and complex with the passage of time. This happens when the expansion starts with the passage of time. This happens when the intensive competition actively starts with the compaines for getting an edge (advantage) over competitors, activity. In the new markets, the product is introduced slowly but steadily by analysing the required information.

Scheduling of commercialisation activities as urgently needed. Advanced technique of scheduling like critical path method (CPM) can be used for this purpose. A careful scheduling, of the commercial introduction can lead a company to the commanding heights and provided it with a prolonged and srong competitive advantage. All this depends upon the careful handing and using of research effective information. In nutshell, it can be said that the new products introduction is a game of effective information handling.

PRODUCT LIFE CYCLE RESEARCH Marketing research not only plays s significant role in collecting and analying information pertaining to the new product introduction but also it helps to a great extent in efficient handling of the existing products by investigating into the various product life cycle stages.

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There are four distinct stages of the product life eye cycle. These are: (i) introduction stage, (ii) growth stage, (iii) maturity stage, and (iv) decline stage. In each of these stages of the product life cycle, certain research investigations are needed to get appropriate information and analysing those effectively.

1. Introduction Stage During the introduction stage, the information on product acceptance, product image and distribution system are needed. The expenditure on promotion is required to be more during this stage.

Prices can be fixed in such a manner that other expenses get compensated. Profits are low at this stage.

How to make introductory stage more result yielding? Some research is needed to be carried out and information thus obtained, is to be evaluated to get proper answer for this question.

2. Growth Stage During the growth stage the product starts yielding very good profits but there is a threat from the competitors who try to enter the market and snatch the market share. To keep an eye on the competitors’ strategies during the growth stage, a research effort is needed to be made to gather information on the competitors' product attributes, market share, price structure, discounts and allowances in pricing policies, distribution policies, promotional programmes, etc. The emphasis of the company is again on increasing the product acceptance, product image and market share of the product. This is carried out by improving the product quality and adding new features in the product, searching vigorously for the new market segments, opening new distribution channels for providing more exposure to the product, shifting from informative advertising to persuasive advertising, and lowering prices at the right time to attract the new price sensitive layers of customers. So, the vigorous research efforts is urgently needed to meet various information requirement .

3. Maturity Stage During the maturity stage, the product's sale reaches that highest point but the profits start declining slowly thereafter. At this stage, the number of competitors increases further and they become very tactical. More and more research is needed to visualise and counter their activities. The maturity stage may exhibit three phases, viz., growth maturity— where sales grow slowly, stable saturation maturity—where sales maintain a constant level, and decay maturity—where the sales where the sales start declincing. Competitors get engaged in mark-down and off list pricing. So advertising programmes eat up the major chunk of the budget. Product can be saved from dropping out througnrmarfcet modification by entering into new market segments and searching new markets, increasing usage rate of the product, and repositioning of the product achieves better sales. Also product modification to reliance the product can be carried out through quality improvement, feature improvement, and style improvement. Thirdly, marketing mix-modification can be carried out by adjusting all the four P's of

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marketing-mix. All these modifications, if brought about effectively, require a large amount of information to be gathered and analysed about the competitive environment. For this purpose, marketing research gains a vital significance.

4. Decline Stage Decline stage exhibits a sharp decline in sales of the product. The firm has to decide whether to drop the product or continue with it, The marketing researcher again has to gather a lot of information These information may be on identifying the weak products. All identifying the weak products, the researches makes available the formation whether the continuation strategy, concentration strategy, or milking strategy will be useful for the information regard to product. It all depends upon the competitors' move.

So the information their strategies pertaining to the product in question] needed to be collected, analysed and interpreted. At the end product may be modified so that new recycle may begin. Otherwise the product may be dropped and abandoned.

SELF – EVALUATION QUESTIONS :

4. ________________ to testing the new product marketing plan as a miniature basis.

5. Screening of good idea, which are better is called ___________.

6. Dropping a better product idea while screening the product idea is ________________.

Answer : 4. Test marketing 5. Idea screening.

6. Drop Error.

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PRODUCT-MIX RESEARCH A continuous evaluation of package designs, brand ing policies, and after-sales service is the essential component of product research These research activities are besides deciding the number of product lines, number of products in each line and product-mix consiststency among product lines and items. Various other product line and mix decisions are to be investigated. Package designs must be in conformity with those of the competitors or better than competitors. Package research is quite complete and to a greater extent is similar to that of advertising copy testing. Both pretesting and post-testing are conducted in packaging research too. Per-space package signs are considered in relation to those of competitors. Generally, paired—comparisons and sales tests are not suitable methods for testing new package against old ones. However, they are in great use. The researcher tests: designs, colours, shapes, sizes and symbols. He/she uses association tests in selecting a package design from a number of available alternatives. This means the researcher has to keep himself embroiled with the collection, analysis and interpretation of information on designs, colours and symbols pertaining to packaging.

Resistance of package for the product handling is also required to be tested individually and in comparison with the competitors' products. Resistance is an essential feature of packing aspects which facilitates the product handling apart from imparting promotional boost to the product. The researcher may investigate the complaints of the dealers and consumers in this connection and after an analysis of the available data, suggest some measures to improve the packing aspects of the product.

Branding Policies Branding policies are also a very significant aspect of product planning and development. If the brand is appealing it can increase the market share significantly, e.g., various brands of toi et soaps of Hindustan Lever Ltd., viz.. Lux, Liril, etc. Brand names should be easy to pronounce, should explain some attributes of the product, and should be shorter containing only a single word. The researcher's task is to investigate whether present branching policy is serving the organisational purpose. If not, what are the reasons for this and which aspects are lacking in branding policy? Whether the individual or umbrella branding policies would be suitable? Whether the manufacturers and distributors' brands should operate separately involving a battle of brands?

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Whether the branch extension strategies and multiple brand strategies should be adopted to increase the level of existing stagnation in sales? All these and a host of such questions need investigation on the part of marketing research department.

After Sales Service After-sales service also forms an area for research investigations. After-sales service is becoming increasingly important these days because of increased competition. Buyers expect that the manufactures (sellers) should remain in continuous touch with them according to the guarantee or warranty given in connection with the purchased product, if the marketer fails to adhere to this condition of the buyers and does not pay much attention to their complaints, he/she issuer to be doomed. The researcher must investigate. Where company’s efforts are lacking pertaining to the after-sales service?

With regard to consumer products, housewives must be contacted and problems on product performance. must be identified, analysed, and solution must be worked out. On the other hand, the dealers to distributors must be interviewed to gather data on problems facing the customers with regard to industrial goods performance. In reality, the industrial goods marketing requires more extensive investigation on the after-sales service aspects as compared to consumer goods.

In nutshell, we can say that research investor’s efforts should be concentrated not only on the new product development but also on the product life cycle strategies and the product-mix elements. In addition, data must be collected and anlysed on problems associated with labeling, guarantee, warranty, trade marks and other product planning aspects.

MOTIVATION RESEARCH Introduction The word motivation includes"... all those inner striving conditions variously described as wishes, 1

desires, needs, drives, and the like.” Thus, the motivation research deals with the analysis of wish desires, needs, drives, and such things. In other words, motivation research attempts to determine the way of consumer behaviour. Motivation research is used more extensively in marketing research why consumers buy one brand or type of product in competing alternatives. Such information helps in design product, its package, pricing, and advertising strategies.

NATURE OF MOTIVATION RESEARCH Motivation research by its very nature is “nose counting" research. By "nose-counting" research, we mean the research is directed at finding the answer to a specific question, or even the number that answers a specific question. The problem in motivation research is that direct approaches generally do

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not work. The researcher cannot simply go up to a consumer and a ask him—why he prefers one product brand over another expect to get a correct answer. Generally, direct questioning give correct answers for one of the two reasons either the does not. know his true reasons or he knows but is unwilling them to. die researchers and gives illogical reasons. Let us these reasons in the ensuing text.

1). The Consumer does not know the "Why" of Purchase Consumers are generally unaware of their own "true" reasons for specific brand and product selections. For instance, cigarette are often said to be extremely brand loyal. If you ask the they prefer specific brands, they will answer without hospital cause of the taste"! Unfortunately, this answer does not square with the well-documented fact that the average consumer is distinguige among different same size, unlabelled cigarettes. 'I be tried out by putting a cover on the brand names of different brands of the cigarettes. Now, these cigarettes with their brand names covered may be given to a person who boasts of having developed brand loyalty for cigarettes on the basis of taste. If this consumer starts guessing the brand name on the taste basis at rancor it will be extremely difficult for him to identify his own brand out the ones supplied to him. So we can conclude that the smokers a brand loyal not to a specific taste but to a specific cigarette brand image or corporate image of its manufacturer. Thus, if we are infested to know why someone is brand loyal to a particular cigarette, we should not as him/her directly. Instead of this, we must investigate his attitudes towards various brands. Thereby, we can indirectly determine: the images, and personality profiles of the consumers pertaining to concerned brands.

These exists another reason of consumers not knowing the reasons for purchasing and subsequently their failure to give answers to direct questioning. Regardless of the specific purchase situation, they tend to parrot the answers that have been conditioned by the extensive advertising. The consumers can also get confused about the brand, they actually bought. This happens because of the influence of heavy product identification (gene names) with a single brand. They may consider all facial power as "Ponds"; all soft drinks as "Coke"; all toothpastes as "Colgate all photocopiers as "Xerox" and so on.

From the standpoint of the major manufacturers, this heavy brand/product identification (through generic Nan can be viewed either a blessing. This depends upon objectives of the firm's management.

But from the standpoint market researcher, it is a total disaster. In response to direct questioning concerning purchase behaviour, all a researcher gets is major brand names—even when the consumer is buying brands".

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2). The Consumers will not tell about their Purchase Another reason for incorrect answers lies in the choice made by many consumers, not to tell the correct answer even if they know it Generally speaking, it can be assumed that a significant amount of deliberate misrepresentation will occur at any time as the subject area is either morally sensitive or statusrelated. Thus, people tend, to overestimate their incomes, their charitable offerings and their purchases of domestic branded items. And they tend to underestimate their drinking, their smoking, their adultery, and their pa chases of domestic-branded items. Respondents will also modify their answers in an attempt to appear logical and intelligent. For instance, the purchaser of a new "Bullet Motor Cycle" may know that the reason he bought such an expensive and powerful motorcycle was to show it off to his friends and relatives. But it is doubtful if he will say so to the interviewer. Rather, he will talk of the outstanding style, speed, economy, safety and good resale value of the bike. His true reasons can be discerned only through use of the relatively indirect methods of motivation research.

3. The Consumers may put forward Illogical Reasons for their Purchase The reasons for consumer preferences are seldom logical. The researcher who approaches the respondent in a direct, logical, and straight-forward manner will often obtain very misleading answers?

Whereas some motivation research can be conducted in a relatively direct fashion. In other areas valid results can be obtained only from very indirect and seemingly roundabout methods. Furl further more, since the nature of investigation is subjective, the conclusions produced are often highly speculative and will vary greatly with person performing the research.

SELF – EVALUATION QUESTIONS :

7. Information colleted, the company can decide the future of the new product as two factor ________________, _________________ 8. Product planning and development ________________ play a significant role.

9. List out two stages of product life cycle.

ANSWER : 7. Trial rates and repurchase rate.

8. Barding policies.

9. 1). Introduction stage. 2). Growth stage.

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TYPES OF INFORMATION SOUGHT IN MOTIVATION RESEARCH We need to "... focus attention on the whole battery of inner conditions that play a dynamic role in a person's buying or not buying, responding favorably or unfavorably to some communication." The battery of inner conditions includes "... cognitive factors such as information or misinformation people have, and perceptive factors such as the way they see a situation. These factors as well as the motivational forces such as attitudes, expectations, habits, and intentions—all influence the way a consumer behaves."

We may not be able to pinpoint at this juncture what information is relevant in the study of motivation research, but any information which has something to do with the why part of the consumer behaviour is significant in the motivational research. All information related to perceptions, learning, culture, society, personality, and group influences have something to do with motivation research. Therefore, the information on he entire field of human behaviour is needed for conducting motivation research. This is difficult to say which information should or should not be included for carrying out such study. In the ensuing text of this section, we will focus our attention on some of the major fields of human behaviour regarding which information is commonly sought while conducting motivation research

attitudes,

assumptions, sensations, Images and motives.

Attitudes Attitudes are assumed as the predictors of human behaviour. They represent a predisposition to respond to a given stimuli. Why do people accept or reject product appeals, advertisements, feature and package designs? To see the relationship between the stimuli (like advertisements) and the extent of the response (purchasing not purchasing), we consider the underlying text.

Consumers are believed to have stable sets of attitudes. They sets are different form different individual consumers. These sets of attitudes towards a product-brand may be favorable or unfavorable.

The set of attitudes can be changed by carefully formulating advertising appeals aimed at a particular mark segment. Because different segments may have different consume with varying set of attitudes so one ad cannot please all of the and cannot change their attitudes favorably towards the seller brand.

There are forces at work to change the attitudes. So a seller must not become after attaining a favorable attitude toward his/her brand of the product. Repeated soundings through advertising appeals are required to maintain a favorableness in the consumers attitudes.

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Assumptions Assumptions are the "frames of reference" formed out by consumers of the information gathered from their experience. They try to "fit" things in their "frames of reference". If these "do not fit", they reject the things. Many of these reference points are subconscious cause they are deeply embedded in their subconscious mind.

It is important to have knowledge of assumptions and held by consumers. Some consumers may use price as an index quality. They may declare a product as "cheap" if it sells at substantially below the level at which competitive brands are selling.

Consumers make a number of assumptions regarding beliefs products and companies—often without facts For example, the beer in pastel colour bottles is thought to be "lighter" and the same beer in coloured bottles is considered to be "stronger" fabrics (such as wool) are considered better fear and similarly the products produced in other country.

Assumptions and beliefs are closely related to attitudes but; are harder to change than attitudes.

Many a times they are obtained from previous generations and are implanted in an early age of a person.

People have certain group affiliations and their assumptions and beliefs get drawn from their affiliations as in the case of social classes and castes.

Sensations Sensations may be defined as the reactions of a person's mind to either a mental or physical stimulus. Sensations are commonly produced by stimuli which affect a person's sight, smell, hearing, taste, and touch. The words sensation, feeling and emotion are often used interchangeably. Technically a sensation has to do with a bodily response to a stimulus, while an emotion (such as love, hate and fear) is the reaction of a person's mind resulting from the bodily response, The word feeling describes what is felt by both body and mind.

Images Images are defined as the mental pictures that are formed as a response to stimuli. These are closely tied to sensations. Consumers develop some images about brands, products or companies.

These images are built on the basis of salient features of the product or brands which are considered

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really unique by a particular consumer. These images lead a consumer to buy or not to buy a brand of the product. The images can be changed with the help of improved advertising.

Consumers have a precise image of a brand of the product. For example, consumers have images towards black and white TV sets and colour TV sets. There may be better images about the latter because of the improved product appeals in advertisements. Consumers again have images about various TV brands and companies producing those brands.

Consumers have distinct images toward products, brands, and companies. They have better images for some brands than for other brands. If a consumer purchases a branded product, generally this purchase is not on the basis of taste or usage but on the basis of image of the company producing that brand e.g., beer, cigarettes, packaged foods, etc. A brand image can be changed favourably over a period of time by designing effective advertisements and other sales efforts for the brand.

Motives Motile is one of the more impelling determinants of a person's action. Motivation arises out of the tension-systems and directs the individual towards a goal. Once the goal is achieved, the individual is relieved of the tension and thus, feels motivated.

Motive in other words, is a need, want, drive mind of an individual. Marketer's task is to develop a tension in the consumers' mind and thus create a need for his brand of the product.

In nutshell, the foregoing discussion focuses on the information required to analyse the "why" part of consumer's behaviour, Attitudes, assumptions, motives, sensations and images are commonly used elements on which information is needed to duct the motivation research successfully.

MOTIVATION RESEARCH TECHNIQUES There are four techniques of conducting motivation research. The include (1) Non-disguished structured techniques; (2) Non-disguised non-structured techniques; (3) Disguised non-structured techniques: and (4) Disguised structured techniques.

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In the ensuing text, we shall take up for discussion each these four techniques of motivation research.

1. Non-disguised Structured Techniques This approach employs a standardised questionna on beliefs, feelings, and attitudes from the respondents of study is explained clearly to the respondents. So, nothing about the purpose of study is concealed from the respondents, Three types or methods may be employed to collect data as explained below.

(i) Single-question Method This is the most simple method used to collect data on attitudes. A single-question is asked with a variety of given response-choices. A respondent is required to give one answer selected from choices provided to him/her. For example, to find out consumers attitudes towards a given product, the following question may be asked: Which one of the following responses (statements) best describe your feelings about brand X of the product?

1. I like it.

2. I dislike it.

Or, more elaborate alternatives may be made available as follows: 1. I think it is an excellent product.

2. I think it is a very good product.

3. I think it is a good product.

4. I think it is a fair product.

5. I think it is a poor product.

6. I think it is a very poor product.

Advantages: The single-question technique has the advantage of being easy to administer and analyse. However, it does possess serious demerits.

Disadvantages: Firstly, the subject-matter being specific, it is difficult to construct meaningful categories. For example, the responses to the general question. "How do you feel about brand X of the product?"

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It would be difficult to interpret because the respondent gets confused on what basis the evaluation of the product should be made. The respondent answers according to his/her own value system regarding the brand and not what the researcher wants.

Secondly, specified alternative answers may force the respondent to express an attitude which he/she does not hold. Many respondents may not have a well-formulated attitude on a product.

Thirdly, semantic difficulties are likely to be accentuated because answers are limited to fixed alternatives which may not exhibit clear meaning of the response.

Finally, although respondents can be ranked relative to one another according to the category they choose, there is no way to determine how much one person differs from any other person in terms of "favourableness" or "unfavourableness".

(ii) Multiple-question Method In this method a number of questions are asked about the attitudes. The score from all the questions, or responses give the total score on the attitude of the respondent.

Generally, scales are used to conduct the research. The discussion on scaling techniques is beyond the scope of this chapter. These more complicated scales do not solve the problem of how much less favourable one person's attitude is as contrasted to that of another individual. (iii) Physiological Tests As already discussed in this book, various laboratory tests such as galvanic skin response, eye movement, and pupil dilation are used to measure attitudes of the people toward products.

These tests, however, have got their own limitations that only qualified and experienced researchers can use these tests and draw appropriate conclusions.

2. Non-disguised Unstructured Techniques These techniques use an unstandardised questionnaire. The purpose of the study is revealed fully to the respondent. Neither the questions asked nor the answers given are pre-petermined, is the

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most common thing in various variations of this approach. The techniques are also called depth interviews, qualitative structured interviews, non-directive interviews, focused interview, and cameraaction interviews. All these techniques are designed to gather information on various subtleties of human behaviour including the "why" component.

This type of interview can achieve its purpose to the extent that the subject's responses are spontaneous rather than focused. These are highly specific and concrete rather than diffused and general. These are self-revealing and personal rather than superficial.

There can be a variation of this technique the non directive approach. In this approach, the respondent is not directed at all during the interview. The respondent is motivated to reveal more and more details on the initial question like: “Tell me how did

you feel about the subject?" The

encouragement of respondent may be done by asking phrases like "tell me more", "what more?", "why�, and "that's interesting".

The interviewer must create a friendly atmosphere during the Interview so that the respondent feels absolutely free to discuss his/her feelings without fear of disapproval or loss of status.

The main disaduantage of the depth interview (non-directive approach) is that the data obtained is highly qualitative and ambiguous. This is because the respondent is not articulate in his her remarks and thus, rambles in various unwanted directions while responding. Therefore, it is extremely difficult lor the researcher to interpret data. To remove this disadvantage, a more structure approach is required to be used. Despite this limitation, the data obtained from the non-directive approach can be used as a source for hypothesis development.

3. Disguised Unstructured Techniques In this case, the purpose of study is not revealed. A list unstructed questions is used to collect data on consumers attitudes. The purpose of the research is disguised, this is done because many consumers either do not know, unwilling to reveal or express the reasons of their previous purchase. If at all they are asked directly, the answers are Illogical and misleading.

In order to get the true information on the subject under study, indirect questions are asked from the respondents. This art of using disguised and unstructured method is referred to as the projective techniques. The projective techniques include several tests given to the respondents. They may be asked

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to give their comments on cartoons, pictures, stories, etc. This is a method which compels a respondent to project himself on the "why" part of his/her behaviour while explaining the things like pictures, dolls, cartoons, etc. The respondent may also project "why" part of his/her behaviour while associating words, completing sentences, or completing the incomplete stories. The respondent has his/her own choice to interpret the given subject.

There are unlimited alternatives available to him/her for expressing his/her inner feelings on the subject. The stimuli used for this purpose are capable of arousing the respondent to a variety of reactions.

The projective techniques initially were developed and used by clinicians to analyse the minds of abnormal patients. There has long been a considerable controversy over the validity of the projective techniques among the students of clinical psychology. To some extent this ambiguity about validity might be accredited to expecting too much from these tests. On the other hand, some experts conclude that more valid results are obtained through the projective techniques than by the direct questions.

A number of projective techniques are available to the market researchers for the purpose of analysing the "why" part of consumer behaviour. The major projective techniques are: (1) word association tests, (2) sentence completion tests, (3) story completions tests, (4) pictorial tests, and" (5) ink blot tests. Let us discuss each of these tests one by one in the underlying text.

(i) Word Association Test In the word association test the interviewer calls a series of listed words one by one. The respondent quickly replies with the first word that comes to his/her mind. For instance, the question asked maybe: What is the first word that enters your mind for each of following products: oatmeal, coal, prunes, beer, crystal, an the respondent answers were dull, strike, laxative, belch, break, and itch, then those products may be facing some image problems and that needs to be addressed in their advertising and promotional efforts.

If the list of words presented is related to a subject of interest, the respondent may indicate some of his/her attitudes toward the subject with his/her responses. The underlying assumption is that by "free associating" with certain stimuli (words) the respondents will reveal his/her inner feelings about the subject being studied.

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The responses are timed so that those answers which the respondents “reasons out” are identified. The delay in response may indicate “blocks”. These blocks must be taken into account in the analysis.

The researcher is required to prepare a list of "stimulating” and "neutral" words. What stimulating words should be included depends upon the purpose of study.

There are several variations to the simple test situation. For example, the respondent may be asked to give not only the first word that comes to mind but the first three or four words. Variations of this technique may be that it can be run as a controlled test as contrasted to free association. For example, a respondent may asked, what brand of a cake-mix comes to your mind when I mention of baking a cake? or what brand of detergent comes to your, mind first when I mention soft and fluffily clothes?

The words obtained as responses are analysed by arranging them into favourable/unfavourable, or pleasant/unpleasant categories. Individual questionnaires should be checked for consistency. And also for evidence of "blocks". The blocks indicate the respondents inability to "associate" within a time limit such as five seconds. This is the reasons that respondent's response must be timed and if the answer is not coming within the stipulated time, the researcher should proceed to the next word. (ii) Sentence Completion Test Sentences completion test is similar to word association test except that the respondent is required to complete an unfinished sentence. For example, "I do not use shampoos because ..." "A man who use shampoos as a ..." "Brand X of shampoo is liked by ..." "Shampoo as a hair wash appeals to..".

These are a few unfinished sentences taken from a study conducted to know people's attitudes towards various brands of shampoos. The respondent is asked to complete a number of such sentences.

By doing so, he/she projects himself/herself not only in unfinished sentence but also into the person of someone else. By answering for someone else.

he/she can reveal things by which he/she feels

embarrassed if asked directly for himself/herself. For example, a person may say that people who use shampoos the rich. But, if he is asked directly why he does not use shampoos he may say it is meant for the ladies or children. Actual reason may be the low income that he/she cannot afford shampoos for daily use. But he does not reveal this as the real cause if asked directly. On the other hand, when asked to complete a sentence he/she says that rich people use shampoos, -which can be interpreted that the respondent himself/herself is poor.

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If asked directly "Are you afraid of flying". The respondent may say boldly "no". But if asked in the form of an unfinished sentence like "Most people do not prefer flying because..." The answer may be "because they are afraid of flying." It can be easily interpreted that the person (respondent) is afraid of flying himself/herself.

Thus, the hidden motives of people get projected in the completion of unfinished sentences. If the sentences are chosen with utmost care then a large amount of valuable information on a person's motives can be gathered through sentence completion technique.

The care must be taken that the questions under sentence completion test are worded either in the third person. However, there is no method available to test that which of these techniques, is better.

Some people word their questions in the first person.

(iii) Story Completion Test In the story completion test the respondent is asked to complete a story-end of which is missing.

Thus, the respondent in this case completes a story end of which is incomplete. The respondent in this case is provided with an unfinished story which is enough to draw attention to a specific issue but not sufficient enough to indicate the ending remarks. The respondent is asked to provide the end of the story.

For example, we may consider the following story:

"Shankar and Uma purchased a 'Bullet' Motorcycle. After covering 1000 kilometers the transmission began knocking violently. The mechanic at the local filling station said that it sounded like that the whole transmission is about to give out. Shankar and Uma took the motorcycle to the dealer from whom they liad bought it and ...".

In this case an attempt is made to extract out information on buyer's attitude towards a specific make of the motorcycle and warranties in general. The buyer will vigorously express his/her altitude while completing an incomplete story. Such attitudes, however, will not be expressed by the same buyer in such a clear and frank manner if asked directly. This is the most significant reasons that there is a great application of the story completion tests in the marketing problems. We are able to find out me almost exact version of images and feelings of people towards a company's product. This helps in finalizing the advertising and promotional themes for the product in question.

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(iv) The Posenweig Picture Frustration Test In this test a respondent is shown a cartoon-type drawing or picture, usually involving two characters. One of the caption balloons is completed but the other is kept blank. The respondent is asked to fill the in balloon.

(v) Thematic Apperception Test (TAT) In the Thematic Apperception Test (TAT) balloons are not provided with the frustration cartoons shown to the respondent. The respondent is asked to interpret the situation with regards to a. particular product, company, or other business phenomenon. Suppose, the interviewer tells the respondent in connection with the cartoon. The respondent is asked to give his version regarding the cartoon. He/she may say that "the lady is complaining against the faulty performance of the product," or he/she may say that “she is asking the salesman to give her one more packet after getting influenced by its performance and salesman's appreciation for it.

With the knowledge of respondent's viewpoint regarding the product, the seller is able to programme his/her selling and promotional strategies.

(vi) Rorschach Tests No discussion on motivation research is complete without a mention of the famous Rorschach tests or Ink-blot tests. These tests are not in much use in marketing research. The Rorschach test expresses in a classic way the rationale behind ail projective tests, that is, in fining the missing parts of a vague and incomplete stimulus, the respondent projects himself/herself and his/her personality into the picture.

A Rorschach Test or Ink-blot Test.

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A blot of the ink is put on a piece of paper and reference made of a company, product, or business phenomenon. Then the respondent is asked to give his viewpoints after interpreting what he/she sees in the ink blot before him/her. The respondents may say "ugly packaging of the product" or "excellent performance of the product". This response will help the seller to finalise his/marketing strategies. This also helps the manufacture to improve his/her mode of production and packaging of the product.

Miscellaneous Techniques Besides the above explained ones, there are a few more disguised techniques. These include: psychographic and espionage technique.

The psychographic technique includes galvanic skin response, eye movement, pupil dilation, eye blink test, etc. These are already explained in the chapter on Advertising Research of this book. Various equipment used to measure these physiological responses of the respondents are also explained there.

These equipments are: galvanometer, eye camera, or coulometer, eye blink cameras, telescope, etc., Espionage techniques help to get information from the respondents who are unwilling or unable to provide details directly. Here the investigator has to adopt certain espionage method or spying strategy. Although the espionage techniques are inelegant, unscientific and even unethical yet, they are only ways to extract information in certain circumstances. There are two main methods adopted to conduct espionage for marketing research. These are : (i)

Use of hidden cameras or tape recorders, and

(ii)

Rubbish research.

Hidden recording technique makes use of hidden video cameras, tape recorders, hidden cameras, and hidden observers to watch consumers as they purchase and consume items. The hidden recorders may be put in shops or/and houses depending upon the information needed.

Rubbish research is another method of espier age activity. Here, the researcher shifts through the garbage of individuals or groups and records pattern of their consumption, waste, and brand preference. Although the rubbish research looks blatantly awkward and ridiculing yet, it gives most required estimates of consumption of products, viz. liquor, cigarettes, medicines, drugs, hygiene products, contraceptive products, sex-related products, magazines, and so on. Because it is not me method that counts but it is the bottom which matters.

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4. Disguised-structured Techniques When we are to measure the attitudes which respondents may not readily and accurately express, we can use disguised structured techniques. The disguised-structured questionnaires are easy to administer and code. Respondents are given questions which they are not likely to be able to answer accurately. In such circumstances they are compelled to "guess at" the answers.

The respondent's attitudes on the subject are assumed to be revealed to the extent and direction in which these guessing errors are committed.

For example, we can use this technique to measure attitudes towards management labour relations. One part of this test can consist of giving a respondent two alternative answers to questions. In these questions each alternative may be equally wrong, but in the opposite direction from the right answer. For example, we can give one of the such questions as: "Average wage of workers in the preindependence period was: (i) Rs. 2, (ii) Rs. 5?" It can be assumed here that a few people know the correct answer. Also that pro-labour respondents would guess the low figure and pro-management respondents the higher figure. The results of such a re search can clearly distinguish between union and management people.

There can be a variation of this technique. We can ask respondents to estimate the percentage of a group which possesses certain attitudes, beliefs, or feelings, or which behaves in a certain manner. The basic assumption underlying this technique is that individuals overstate the percentage of the group that agrees with their own attitudes.

These days a variety of psychological tests are conducted to classify respondents with regard to marketing variables. These tests classify purchasers and non-purchasers on the basis of their attitudes toward a particular product-brand.

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LIMITATIONS OF MOTIVATION RESEARCH Motivation research has the following limitations : (i)

Cautions are required to be exercised not only in the application of these techniques but also the resultant data should be analysed and interpreted according to the psychological theory.

(ii)

Originally these techniques were developed to collect data from a single individual over a period of time. These are not free from drawbacks while we apply these techniques to gather data from a number of individuals.

(iii)

The designing and administering of these techniques need qualified and experienced researchers. Such expert personnel are hardly available.

(iv)

Generally, small samples are taken for conducting motivation research; generalizations if drawn on this basis are misleading.

Despite these limitations, the motivation research has become a very significant part of marketing research. More searchers are making use of motivation techniques is expected that motivation research techniques will be widely used in the coming decades and help solve the time-old problem of marketers that why consumers behave as they do. It may be predicted that motivation research techniques would be used more than frequently than any other research technique in future.

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REVIEW QUESTIONS 1. What do you understand by the term motivation research? What techniques can be used to carry out motivation research?

2. On which aspects the Information is required to be gathered in motivation research? Explain these aspects.

3. Describe various methods used to administer the disguised unstructured questionnaire? Give examples to substantiate your answer. What are their merits and demerits?

4. Define motivation research. Highlight the nature, scope, uses and limitations of motivation research.

5. Write short notes on the following : (i) Motives (iii) Sensations

(ii) Attitudes (iv) Thematic Apperception Tests (TAT)

(v) Rorschach Ink Blot Test (vi) Sentence Completion Test.

6. What are projective techniques? Why these techniques are used more frequently in motivation research? Describe in brief different projective techniques used in motivation research and give their importance.

7. What is a motive? How is it differentiated from attitudes, sensations, opinions. Images and assumptions? How would you proceed to measure motives in the context of marketing?

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UNIT – IV ADVERTISING RESEARCH Introduction The ever-increasing gap between the quantum of production and consumption of goods and services has given birth to today's vast markets. Most manufacturers distribute their products through middlemen in these markets which are scattered all over the world. These long distances between markets are shortened by the manufacturers marketing their products mainly through impersonal advertising media.

The ethics and effectiveness of advertising are highly controversial subjects. Measuring of advertising effectiveness posses many challenging questions to those who create, sell and utilise advertisements. It is a widely accepted fact that advertising is a great force linking the producer and the consumer. Being a controversial issue for researchers and experts, the need for research is increasingly large in the areas of advertising, viz., media selection and copy testing. The need of research in advertising is also significant because a tremendously large number of people are dependent for their earnings from this area. The parties profiting out of advertising are the advertising agencies, the media that carry the advertisements, and the advertisers who sponsor and make the payment for advertising.

These three parties involved in advertising have conflicting objectives, viz., the media, carrying advertisement is interested in justifying that it is having a vast circulation. Thus, it says that it can take the message to various consumers sitting in far-Hung areas and make the venture of advertising successful.

The advertising agencies want to justify that their advertising work is based on sound research foundations and thus, they are doing better by learning more of advertising techniques.

Finally, the advertiser is interested in getting assured that his/her advertisements are going to fetch him/her good profits with increased sales. Though the interests of all the three parties are very conflicting yet, every one of these parties is interested in measuring advertising effectiveness because each of these is going to be benefited if advertisements are effective.

The task before the researcher is also to evaluate advertising effectiveness with regard to message of advertisement and suitability and economy of different media as the vehicles of advertising.

The problems of advertising researcher is summarised in the following text:

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"Today the money spent on advertising resembles to a tribute laid on the altar of some savage and arbitrary god. If you don't advertise, you're doomed. If you do, you still may-be. The unknowable deity must be appeased. But it is costing too much. Advertisers are rebelling. They cannot stop advertising; they do not want to. But they want to know what they are getting for their money. So the time of researcher is at hand. Formulae, concepts, and systems of management are being invoked. But the answers are confusing. Often irrelevant. What should be measured 'exposure', 'readership', 'awareness', and what else? And how? Through a box attached to the TV set, or a personal interview, or by measuring dilation and contraction of the eye pupils? If the vice-president of marketing and sales could measure anything he wanted, chances are that he would say: measure advertising cost relationship to sales and profits. Tell me how much it costs?

Advertising research is not conducted much in India. This is because Indian companies are not much aware of the techniques of its research and the benefit they can get out of this activity. Of late, they are now spending huge amounts on advertisements released in various media, viz., newspapers, magazines, TV, radio, etc. But they do not initiate to find whether expenditure made by them is bringing some worthwhile results in the form of increased sales and profits. If yes, to what extent the increase in sales is due to advertising. Because the increase in sales may be due to various other factors operating in the market place. Therefore, it is the high time that the Indian business organisations understand the importance of advertising and measure its effectiveness. For any firm incurring expenditure on advertising, it is essential that some percentage of the advertising budget should be earmarked for the advertising research.

In the ensuing text, we shall discuss advertising objectives and product appeals, copy testing, and media selection. In other words, we would be interested in answering the following questions: a) What should be said about our product's brand in order to make consumers' attitudes favourable in comparison to competitors' brands of the same product? b) How to put the appeals into a message or copy? c) What media types should be used? What vehicles within media types should be selected? And what media combinations .should be used?

DEFINING ADVERTISING RESEARCH ''The advertising research is an application of marketing research aimed at the measurement of advertising effectiveness (how well an advertisement or advertising campaign accomplishes its

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objectives) and ameliorate advertising efficiency (the most optimum use of the advertising budget and media-mix in implementing an advertising campaign).

The primary aim of advertising—" any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor" — is to sell an idea, a goods or a service whereas the ultimate goal of advertising research is to measure the impact of advertising on sales of that idea, good, or service.

PRODUCT APPEAL RESEARCH In the area of advertising research, we begin with the measuring of the attitudes of consumers to whom the advertisements are targeted. After measuring their attitudes, we attempt to determine the effect of advertising on these attitudes. The consumers might have favourable or unfavourable attitudes towards competitors' brands in comparison with our brand of a particular product. The attitudes can be measured to certain degrees of accuracy and they are the predictors of behaviour of the individuals. On the basis of these data of measurement of attitudes both towards our brand and towards competitors' brands of a particular product, we can conclude that what attitudinal changes are required to be brought about in order to convert the unfavourable attitudes into favourable ones towards our brand.

It is believed that the average consumer has a reasonably stable attitudes towards salient product characteristics pertaining to a product class. With this stable set of attitudes called “backdrop” he evaluates one brand of the product as compared with other. There exists a difference in perceiving the salient characteristics of a product in question in different segments of a market. researcher's task is to find out the salient features of a product perceived by each segment of the market. Once these salient features as are ascertained. Product appeal is designed in order to change the unfavourable attitudes into favourable attitudes into favourable ones. Hence, the re searcher ventures to change the unfavourable image of target audience (towards his/her brand of the product) into a favourable one through the modification of the product appeal.

It is not essential to criticise the competitors' brands but to highlight the good qualities of one's own brand.

To illustrate, we can consider an example of toilet soaps. Suppose, in market A the salient characteristics of toilet soaps may be: * lather generating capabilities; * perfumes and pleasant odor;

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* skin protection; * unaffected shape till the end.

But if first two of these characteristics are considered as salient in market B, then the emphasis of the product appeal in markets should be on the first two characteristics only. Similarly, in other markets, some other sets of features may be treated as salient ones. So the stress is required to be laid on the salient features of product in a particular market segment and the product appeal in advertisements must be designed accordingly. The aim is to reinforce the salient features amongst the present users. An attempt must be made to measure the attitudes by highlighting the salient features in product advertisements. Thus, for improving the product image in a market segment's salient features must be pinpointed and the product appeal must rotate around these.

SELF – EVALUATION QUESTIONS :

1. __________________ is an application of marketing research aimed at the measurement of advertising effectiveness.

2. Copy testing is also called ________________.

3. Copy testing is __________, ________________,.

ANSWER : 1. Advertising research.

2. Advertising message research.

3. Pre-testing, Post-testing.

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COPY TESTING This is also termed as advertising message research. This aspects advertising research conducts tests with regard to the total advertisement, its components, and the dominant theme. The main purpose of copy testing is to apprise the alternative ways to present the advertising message. Copy testing envisages to test copy appeal, size, colour, illustration, layout, frequency or repetition, seasonably, and accomplishment of advertising objectives. Through testing two aspects are needed to be measured: (1) communication effect of the advertisement, and (2) sales effect of the advertisement. The communication effect measures the degree to which the advertisement conveys its meaning to the consumers. Whereas the sales effect intends to measure the impact of influence the advertisement is capable to create in the consumers mind to purchase and repurchase the product and hence the advertisements ability to influence the product sales.

Copy testing is of two types. : (1) pre-testing, and (2) post-testing. Pre-testing refers to testing of an advertisement before it is released for full run in a medium. These tests can also be termed before tests. Some experts call these tests as re-publication tests, But this term is a misnomer because in copy testing we are not concerned only with printed or published advertisements but also with radio programmes and ads and TV commercials and programmes. Post-testing is also termed as post-tests, or post-publication tests by some experts. Post-testing includes those tests which are conducted after the advertisement is released for full run in a single or many media. The pre-testing and post-testing of an advertisement are also called communication effect research because we try to measure the communication capabilities of an advertisement copy through these tests. In other words, communication effect research seeks to know whether the advertising is achieving the intended communication objectives.

PRE-TESTING The advertising agencies spend comparatively more money on pre-testing of the advertisements.

Pre-testing attempts to measure the communication effect of an advertisement before it is released in the media.'

Following tests are mainly conducted in pre-testing: 1. Consumer jury tests; 2. Laboratory tests; 3. Inquiries;

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4. Simulated sales tests; and 5. Portfolio tests.

Besides these five, some experts also include the rating scales and the psychological tests (motivation research technique) in the pre-testing of advertisements. These are discussed in other chapter of this book and will not be deliberated upon here. Here, we would concentrate our efforts on explaining the above mentioned five tests. Let us discuss each of these five tests one by one in the ensuing text.

(i) Consumer Jury Tests The jury is composed of a group of hypothetical consumers (numbering twelve to several hundred individuals). The jury is asked to evaluate the advertisement in question in comparison with so many other advertisements. Single ad can also be given to the jury for testing. In certain other cases, rather than testing the whole ad, a few dominant factors are decided in the light of which the ads are to be tested. Factors can be attention getting power, believability to claims, etc. The jury may evaluate the ads individually or collectively. The test may be conducted at the respondent's home or in controlled laboratory conditions.

The panel of target consumers or advertising experts may evaluate the alternative ads and fill out the rating questionnaires. Sometimes only a single question is asked from the consumers or experts such as "Which of these ads would influence you most to buy the product"? Alternatively, we can use a more elaborate questionnaire comprised of several rating scales. The respondents may be asked to appraise the ad's attention strength, read-through strength, cognitive strength, affective strength, and behavioral strength. The respondent is asked to assign a number of points out of the maximum in each case. We make the assumption that an ad which is really effective in stimulating buyer action, must score highest on the attributes mentioned. Generally, ads are tested for their attention strength and comprehension creating abilities.

The members of the jury are asked to have a look on each of the ads and give their ratings starting with the best and coming down to the worst one. Both the ratio and TV commercials and print media ads can be evaluated by this method. The two main procedures adopted are: (i) order of merit, and (ii) paired comparisons.

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Order of Merit: This method involves ranking of the ads according to preference of jurors. It is observed that by this method ads up to six in number can be evaluated to a reasonably good degree of accuracy. In case the number of ads increases, the accuracy decreases.

Paired Comparison: This method is used when the number of ads to be evaluated are more than six in number. In this method two advertisements are compared at a time by a juror. The record is maintained on a separate card. This means that every single ad is compared with all others but only two ads are considered at one period of time. Scores recorded on the card are summed up after all comparisons are made. The ad having maximum score is declared the winner. Other ads are also rated according to their scores after summation.

The method holds good up to certain number of comparisons. Only if the number of comparisons is kept up to ten, the methods measure ads with a good accuracy. After ten ads the accuracy goes on decreasing. The number of comparisons to be made can be calculated with the help of following formula: n (n- 1) Number of comparisons = = ———— 2

Where: n is the number of ads to be evaluated.

Suppose, if ten ads are to be evaluated, the number of comparisons become: n(n- 1)

10(10-1)

10 x 9

2

2

2

Number of comparisons =

90 =

= 45 2

Evaluation of Consumer Jury Test: There are a number of merits and ` associated with consumer jury tests. These are given in the underlying test.

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MERITS: FOLLOWING ARE THE MAIN MERITS OF THIS TEST : 1. It separates the weak ads from the very strong ones.

2. It is very simple and easy to administer.

3. It is very economical and quick.

DEMERITS: FOLLOWING ARE THE MAIN DEMERITS OF THIS TEST : 1. The selection of a jurors' sample, which accurately to represents a market, is problematic.

2. It is difficult to fix a criterion on which the evaluation must be done. Sometimes ratings may be done on very insignificant basis.

3. Only conscious rating is obtained. The subconscious aspects of behaviour are not revealed.

4. The jurors may assume the role of researcher or expert and reply in a subjective (biased) manner.

5. This is more theoretical. Practical conditions are ignored, The answers are hypothetical,

(ii) Laboratory Tests In these tests we try to measure the physiological reactions of respondents due to advertisements. Three principal measuring devices, used are as follows: 1. Eye camera; 2. psychogalvanometer; and 3. Perceptoscope.

The eye camera measures both the horizontal and vertical movements of a respondent's eye. It also observes minutely where the respondents' eye is focused on the ad. The vertical movement show favourable while the horizontal movement show unfavourable attitude towards the ad in question.

Sometimes the pupil dilation is also measured. The authenticity that it measures favourable and unfavourable attitudes towards ads is questionable. The movement or dilation may be owing to certain other reasons than the ads under consideration.

The psychogaluanometer is another device to measure galvanic skin responses to advertisements (stimuli) under laboratory conditions. Here, we try to measure with a galvanometer the

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physiological reactions like perspiration on a palm of a hand of the respondent while seeing the ad. If the perspiration is more, person is reacting to the ad. But the question remains' unanswered whether favourable or unfavourable reactions are being measured to the ad. This technique is an extremely questionable one in advertising research. It is useful only for ads of very sensitive nature.

The perceptoscope is intended to measure respondents' arousal of interest in a particular ad.

This records the changes in pupils' dilation. If expansion is there the respondent is favouring the ad he/she is reading. If contraction occurs, then the respondent is disliking what he/she is reading.

The technique becomes questionable because the respondent might be taking interest in factors other than those being measured in a particular ad and dilation changes may be taking place due to those other factors. So the authenticity of this method is doubtful.

The laboratory testing is of limited utility. Only qualified and experienced experts can extract some worthwhile information from pre-testing the ads. Also the data collected is of qualitative nature and pose problems of analysis and interpretation.

(iii) Inquiries This test refers to the number of enquiries an advertisement is able to attract after it is run on an experimental basis. In this method the ads to be tested are selected. The ads carry some offer to consumers and are published one by one in different issues of some magazines or newspapers. The number of enquiries coming in response to these ads are measured. The difference in number of enquiries from each issue is noted and analysed. The ad with the highest number of enquiries shows the maximum attractive strength. The returned enquiries show the quality of ad. Alternatively, the ads with some offer are placed in magazines or newspaper providing split-run service. In this procedure the copies of magazines or newspapers carry one ad while the other half copies carry another ad. The number of enquiries are then measured and the ads are judged for their effectiveness. The ad eliciting a larger number of enquiries is regarded as the best.

The enquiry method of testing has both advantages and limitations associated with it. Major advantage is that the method is very quick and systematic. The major disadvantage is that all the people making enquiries may not be the potential customers of the product advertised. Moreover, the method is very expensive and needs a lot of precautions in designing the ads.

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(iv) Simulated Sales Test The test exposes the consumers to alternative copies of the ad through the point-of-purchase displays or direct mail. Suppose, two copies A and B are to be tested. A is displayed in one group of showrooms and B is displayed in another group of showrooms. The increase in sale is noted in each group of stores. The group having more sales is supposed to have the best copy of the ad. In the similar manner, through direct mail the different copies are sent to different groups of customers and effect on sales due to these groups of customers is noted. A group making maximum purchases after receipt of the ad, is supposed to carry the best copy of the advertisement.

The advantage is that this method is simple and economical. On the other hand, it suffers from the limitations of being artificial and misleading in practice. Because the increase in sales at the s pointof-display does not ensure similar increase in the sales when the ad is actually released in the media.

(v) Portfolio Method Besides the above discussed method, the portfolio method can also be used for pre-testing the ads by many experts. In this method a number of dummy ads are put in folio along with the ad to be tested. The folio is given to the consumers (selected through sampling) and they are asked to see each ad in the folio. After closing the A folio, consumer is asked to playback what he/she has seen about each ad. The ad about which maximum contents are played back is y regarded as the best. It is checked whether the real or dummy ad adjudged. If it is the dummy than the actual ad is improved on the same lines. This method has disadvantages as it is more theoretical than practical. The advantages are that method is simple, quick and very economical. The disadvantage is that many ads may be judged as the best by different consumers, which may create problems of detecting the real best ad out of many.

POST-TESTING Unfortunately, the pre-testing of advertisements is not an established science of great precision.

Owing to this reason further testing ads is needed. With this point in view, post-testing techniques of ads have been developed.

The post-testing is a technique which not only measures effectiveness of an ad but also attempts to find why a given ad is effective or ineffective. The post-testing techniques try to measure the memory of respondents about the ad in question. Most commonly used techniques of post-testing are: (1) recognition tests, and (2) recall tests.

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Some experts broadly divide the post-testing techniques has following two categories : (1) Penetration tests (2) Progress tests. Penetration tests include the above listed two tests, namely: (i) recognition tests, and (ii) recall tests. Whereas the progress tests include various tests such as acceptance, preference, intend-to-buy, and results. The penetration tests try to find out whether readers' have read the ad and up to what extent the knowledge about the given brand has penetrated in their minds. The progress tests try to measure the attitudes of the consumer towards products' brand in question and sales results. We shall discuss both penetration and progress tests in detail in the following text.

1. Penetration tests (i) Recognition Tests These are also termed as readership tests. They are more widely known as the Starch Advertisement Readership Rating. Starch tests have been conducted by the Daniel Starch Organisation U.S.A since 1932. In these tests readers are shown issues of magazines, they claim to have read and results are tabulated for three categories of readership: (1) "noted" (N)—the percentage of readers having seen the ad (2) "seen-associated" (A)-the percentage of readers associating the ad with the product or advertiser, and (3) "read most" (RM)- the percentage of readers having read over half the ad. From these data, we can calculated the readers per rupee using the following formula:

Per cent noted x Magazine's primary readers Readers per rupee = ———————————————————— Space cost

MERITS : (1) These tests are very simple and economical. (2) these have| proved valid in measuring readers' .interest and awarness about; the ads.

DEMERITS : (1) These is hardly any positive correlation between recognition of the ads and sales of the product's brand advertised. (2) Sometimes readers claim to have seen or read many ads than what actually they have seen. To probe this, one has to insert certain dummy ads in the magazines. (3)

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Non-readers can also claim readership. In some studies, it has been found that readership has been claimed by the non-readers. In other studies, it has been found that readership claimed by non-readers is as great as claimed by the readers. (4) The respondents may confuse the specific ads with similar or identical ads seen elsewhere.

They may believe having seen the ad because of its being nearly familiar editorial material. They may desire to please the interviewer. Also they may be "co-operative" because of the fatigue from the length of me interview.

(ii) Recall Tests The recall tests deal with asking the respondent what he/she can recall or remember about an ad.

These tests differ from the recognition tests in that the respondent in recall tests is not shown the ad in advance. For conducting the recall tests, we ask only the qualified readers that is those who are able to describe atleast one editorial feature of the magazine issue in which the ad in question has appeared.

From these qualified readers, "recall is obtained- using both aided and unaided recall techniques. The respondents are asked to play back everything they can remember. All responses are recorded in verbatim.

Recall tests can be conducted in three different ways mentioned below. These three methods include: (1) "Unaided recall' the respondent is not helped in any way in recalling the ad, by the interviewer; (2) "aided recall"-m this test respondent is given some clues for recalling the ad; and (3) the "triple associate test'-where the respondent is asked to recall the ad and associate that with the product, brand name, and copy theme. The triple associate test measures the awareness about the product created by the ad. The respondents may be asked: What company advertises "Made for Each Other"? If the answer is "Godfrey Phillips India Ltd., for Four Square Cigarette" then the association with the brand name has been successful.

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SELF – EVALUATION QUESTIONS :

4. ___________ is device to measure the galvanic skin response to advertisement.

5. ________________ deal with asking the respondent what he can recall about an advertisement.

6. P.C.R.B. method means ____________, ____________, ____________, ANSWER : 4. Psychogaluanmeter.

5. Recall test.

6. Penetration, comprehension, Believability.

MERIT : Recall tests are simple, economical and easy to conduct. Recall tests measure that to what extent the ad has penetrated (its ability to communicate) in the mind of a consumer.

DEMERIT : A high recall score does not necessarily mean that consumer will buy the product.

This means only that the consume takes interest and remembers the ad because of its attractive presentation in the media. So these tests have a limited value foil measuring advertising effectiveness.

P.C.R.B. Method To test whether the ad has penetrated in the mind of con-Crisp has developed P.C.R.B. (Penetration, Comprehension. Believability) Method. The P.C.R.B. techniques allow (lie i dent to take as much time as he wants to read the ad.

Immediately after his reading, questions are asked with aided and unaided that what he remembers about the ads of similar products. This provides for comparability of data. In order to find what impact retention the ad has, the respondent is asked about his experience with regard to specified descriminants among the P.C.R.B. factors of an ad. Tills may provide an overall picture of the relative impression that the ad makes on the reader. The test is applicable to TV commercials as well. Crisp puts

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forward the limitations of this method as: when lest is applied to a product class like deodorants, the respondent may not give exact personal (or private life) details to a stranger. Further, the method only measures memory (conscious behaviour) of the respondent. It does not attempt to measure whether such a recall will lead the reader to buy the product or change his behaviour?7

2. Progress Tests As already pointed, these tests deal with the measurement o stages of buyer awareness, preference, intention-to-buy purchase as related to advertising efforts. In other words, we try to measure the advertising effectiveness in terms of sales. So these tests can also be termed as sales effect tests.

These tests a make use of the techniques discussed in penetration tests. reason we have given only the brief introduction of these in darling text.

The awareness and preference tests are employed to test products or brands that can be divided into two classes: (i)product about to be or only recently introduced in the market, and (ii) products available for quite some time but which have varying shares of the market. The techniques can be used to test: T.V. Radio. Newspaper, Magazine advertisements and other promotional activities such as personal selling.

Awareness test tries to measure the informative value received by the consumers from the ad and impact it has caused in his/her mind with regard to product purchase. These tests also attempt to measure the percentage change of preferences before and after seeing the ad. The consumer is asked to make a pre-choice from a list of major brands of a product. Then he is shown the ad (TV commercial or print one) and asked to show his choice again a the list of brands. The net percentage change from other brandy researcher's brand is called preference change: Suppose A is a new product with pre-choice 5 per cent and it has possibility of drawing the remaining 95 per cent. The product B is old with pr choice 45 per cent and after-choice 55 per cent. The change-percentages are called ceiling. To calculate the ceiling, Hovland ho given the following index:

P2 — P1 Effective index = 100-P

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Where: P1 == The initial percentage (pre-choice) P2 = The final percentage (post-choice)

MERITS : FOLLOWING ARE THE MERITS OF THESE TESTS: 1. These tests are simple and easy to execute will the minimum expenditure involved.

2. Advertising effectiveness is measured immediately at one particular spot so results are not influenced by other factors.

DEMERITS : FOLLOWING ARE THE DEMERITS OF THESE TESTS: 1. Awareness and preferences are there but they may not lead to actual sales.

2. As the consumer is asked immediately after showing advertisement, he may be biased as he does not get time think as in usual practice.

Intend-to-buy Test In this method a sample of potential buyers and records of particular magazine in which company's advertisement appeared, are taken. These respondents are asked questions-whether they read the advertisement and what influence it has caused on their read intention? Whether they have made up their mind to buying Further questions are asked like: Which part of the ad influenced them most? They are also asked about their assessment of the ad and suggestions to improve the weak spots in that. From this information, we are able to measure the sales effectiveness of the ad because it can be assumed that people who intend-to-buy will buy the product in reality. The respondents are also asked why they| not bought the product just after reading the advertisement.

MERITS : FOLLOWING ARE THE MAIN MERITS OF THIS TEST : 1. This test is easy to implement because it does not involve any technical details.

2. Results can be tabulated and interpreted easily and quickly because of its simplicity.

3. It is more economical as compared to other tests.

4. With the data on suggestions and limitations, the ad can be improved tremendously.

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DEMERITS : FOLLOWING ARE THE MAIN DEMERITS OF THIS TEST : 1. The test questions are to be developed which is a difficult task. Only experienced people can know the minor details to be included in such a questionnaire.

2. The person may intend to buy but may not buy due to certain constraints.

3. This test is not able to measure the sales effect but only communication effect of an ad. Thus, the test measures the intention to buy but not the actual sale. The intention may change later and product may not be bought at all.

Sales Result Test This measures the advertising effectiveness in terms of increase in sales. A manufacturer who wishes to apply sales tests has to choose two groups matched markets with almost the same ad expenditure and sales: test markets and control markets. Test markets again comprise two similar subgroups. The advertising expenditure is increased by 50 per cent in one test market and decreased by 50 per cent in other. The expenditure is kept constant in control group markets. This is done over a period of time and repeated. The influence of the ad on sales is measured in test markets and control markets, if the sales increase with the increase in ad expenditure then advertising is effective. Otherwise, it does not have any significant influence and required to be improved with regard to copy contents. The least square analysis can also be used to find a relationship between past ad expenditure and sales of previous years and sales for the current year can be predicted. This is called historical approach of measuring sales effect of an ad.

MERITS: FOLLOWING ARE THE MERITS OF THIS TEST: 1. It helps in estimating fairly accurately the shape of the sales-response function in different types of territories.

2. This is the best way to determine the impact of advertising expenditure on sales.

DEMERITS: FOLLOWING ARE THE DEMERITS OF THIS TEST: 1. It is not possible to find similar markets with regard to advertising expenditure and sales. Every market: is different from other markets in some aspect or the other.

2. If the competitor(s) also change their marketing strategies during the experiment period, impact of the ad expenditure on sales cannot be measured due to the impact of competitors' strategies.

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3. Other factors, viz., product quality and after sales service, may also influence the sales instead of advertising

MEDIA SELECTION RESEARCH The advertiser is also interested to select the better medium to reach the maximum of the potential customers (target audience). This involves a thorough and careful investigation of media and thus selecting the most appropriate one for the advertising campaign.) Certain questions are to be answered while selecting the appropriate media. Whether a single medium or combination of media be selected? This is the decision which is required to be investigated. That is, whether TV, Radio, Newspapers, Magazines or Journals be used individually or a combination of these should be used for advertising a company's products? Whether the local, regional or national advertising media should be selected?

If print media is to be selected, what newspapers or magazines or journals should be selected?

What should be the periodicity of media: daily, weekly, monthly, quarterly; or more?

These are some of the many questions to be answered in the process of media selection. All this requires information hence there is a need to carry out media selection research.) Both print and broadcast media are discussed in the following text

1. Print Media Newspapers and magazines are heavily (sometimes entirely) dependent upon advertising revenue. As the media circulation increases, so does the attractiveness of a newspaper or magazine to an advertiser, and the medium may raise the advertising rates. A better way (though more difficult way) to measure a publications' real distribution impact, is through measuring its readership or total audience.

Media buyers need to know the accurate circulation and readership figures to compare costs among various publications that reach similar audiences. In the case of magazines, the formula for the cost per page per thousand circulation is:

Page rate x 1,000 Cost per page per thousand circulation ==

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Newspapers advertising rates can be compared using milline rate (Cost Per Line Per Million Circulation) formula : 10,00,000 x rate Cost per line per million circulation = Circulation = Million rate in

2. Broadcast Media The broadcast media here includes both TV and Radio. The task of measuring audience size for these media is considerable different from that of measuring print media audiences. Measuring total audience is more complex for broadcast media than for print cause of the intangible nature of the message. Also sometimes, several people may listen to a single radio or watch one TV set at the same lime or for varying lengths of time.

Despite the difficulties peculiar to these types of media, researchers have been made available the following four basic methods for measuring radio and TV audience size and characteristics:

1. The roster-recall method; 2. The coincidental method; 3. The audiometer; and 4. The diary method.

1. Roster-recall Method This method incorporates a form of an aided-recall method in personal interviews of a sample of households. Respondents are shown a roster, or list of programmes broadcast the previous day and the interviewer checks those the respondent claims to have seen or heard. This method has the advantage to obtain detailed information concerning the audience composition as well as its size.

However, the chief disadvantage of the roster-recall method is that it greatly depends on the respondents memory, an often u factor in research.

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2. Coincidental Method A random sample of homes is selected and telephoned by the interviewers during the broadcasting telecasting hours. Respondents asked what programme are they watching or listening to at particular time and what sponsor or product is being advertised advantages of this method include: speed and economy in gathering data. The main weaknesses include: This method is restricted to homes having telephones. So poor and rural households cannot be interviewed. Because homes can only be called during the certain early broadcasting hours, this method cannot measure broadcasts - or telecasts late at night or early in the morning.

3. The Audimeter Method The audimeter is attached to TV or radio sets at random in the homes of potential consumers.

The device maintains on a magnetic tape a continuous record of the set in usage channel on and the station channel to which tuned. Its advantage is that with the aid of audimeter one can accurately measure the sets in use from a valid sample.

However its disadvantage is that it does not indicate who is watching the set or listening to a radio set or whether the set is being watched or listened to at all. Audimeter only records whether the set is tuned on to a particular channel or station. It tells nothing about the audience presence and their behaviour.

4. The Diary Method The respondents are supplied with diaries and are asked to record what they watched or listened in TV or radio set. Its advantage is that this obtains watching or listening data about every member of a household. However, this method suffers from the limitations of human element. It assumes that the respondent faithfully and accurately records the households viewing or listening habits in the diary.

Human nature being what it is, this is a questionable assumption indeed. The respondent may behave like an expert and give expert comments on ad rather than the rating.

These methods are full of limitations. Despite these limitations, measurement of broadcast telecast media audience is necessary. The programme sponsors have some idea whether their messages are reaching the people they want to reach and whether the money they are paying to the media is being well spent. On the other hand, none of these four techniques evaluate the relative efficiency of the various types of media. Left unanswered is also the question whether TV or magazines constitute the most efficient medium for presenting advertising messages. Answers to this type of questions can be obtained by a case- y 6 by-case study approach, taking into account a number of

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factors (such as cost, product, target audience, and type of message). These days TV has emerged as the most effective media for advertisements.

DIFFICULTIES IN ADVERTISING RESEARCH The advertising research aimed at measuring advertising effectiveness, frustrates three parties (viz., the advertiser, the advertising agencies, and the advertising media) owing to their conflicting interests. Despite conflicting and complementary interests of advertising effectiveness. In the case of little emphasis on 11 a of research, advertising research will remain an inexact science.

In India, a little literature is available on advertising research which is negligible as compared to industrialised nations world. The researchers in the field of marketing are required to seek co-operation from the industrialists after convincing them to change their traditional attitudes towards advertising and its research. The researchers are earnestly advised to go to the field and discuss these problems with the businessmen and various benefits advertising research can accrue to the business world after a little investment on it. Some of us have to come forward and only after hazardous exercise, we can reach a stage where Indianised literature on advertising research can be made available to our advertising and marketing management students. This can in turn be applied to improve the standard of advertising research in India.

SALES CONTROL RESEARCH Introduction These day sales control research is becoming increasingly important. Because marketing management depends heavily on it formulating marketing policies, and planning and controlling marketing operations. In a broader sense we can describe sales control research as the identification and measurement of all those variables which individually and in combination have an effect on the sales.

Sales control research comprises substantial proportion of research work conducted by marketing research department of various companies. This encompasses the marketing pertaining to: sales forecasting, market potentials, market share analysis, determination of market characteristics, and sales analysis. These are the four most common sales control research activities undertaken by a marketing research department of a company. Short-range and long-range forecasting, establishment of sales quotas, and assigning of sales territories are also re as the standard activities carried out by various Indian the present chapter', we shall concentrate our efforts on discussing sales forecasting, sales analysis and sales potential.

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SALES FORECASTING Sales forecasting means the prediction of sales of a particular product, company, branch office or other unit for a given period of time. The sales forecast is the pivotal point around which the most business planning rotates. Such important areas of decision making production and inventory scheduling, planning for plant and purchases, investment, manpower requirements, raw material advertising outlays, sales force expenditures, and cash flow are dependent on the sales forecast. It is observed in various studies that any significant error in the forecast can have far reaching and serious consequences. The increasing availability of economic data, continous improvement of technique, and expanded computational ability provided by the computers have made it possible for firms to forecast their sales with considerable accuracy.

These days as a result of increased computational ability, firms are capable of using more variables in their sales forecasting efforts. These variables encompass: (1) general economic indicators (2) industry data, (3) plans for new products, (4) anticipated action and reaction by competitors, and (5) price and promotion plans.

The firms, moreover, can use complex and sophisticated techniques, viz., multiple-correlation, etc., which otherwise would not be feasible because of the tremendous volume of calculations required.

Sales forecasting being a complex subject uses a variety of concepts and techniques. Some of these are highly sophisticated. A detailed treatment of these is not possible here keeping in view the complexity of it. Yet, the following discussion describes more typical approaches to the problems of sales forecasting.

1. Jury of Executive Opinion Jury of executive opinion method and sales force estimate method are subjective methods of sales forecasting. Each of the selected executives makes an independent forecast of sales for the next period, usually one year. These forecasts are more than typical executive has considerable factual data available to him/her, and presumably possesses mature Judgment.

Once the various executives have made their estimated, some method of reconciling the differences or averaging them out must be determined. The chief executive of a company may consider

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the various estimates and make a final decision. A round table discussion with a brainstorming session may lead to the final reconciliation of the estimates.

2. Sales Force Estimates Sales force people are asked to give their opinions on the estimates of sales. This is also conducted like the executive jury method. The difference between the two methods is that the present method questions sales people whereas the former one questions executives in connection with the sales estimates.

This method is advantageous because we contact sales people rather than executives, who are closer to the ultimate customers and may have a better feel of the market. The studies have shown that closer the one is to the ultimate consumer, the better one’s forecasting will be. For example, the retailers' sales estimate is better than the wholesalers' and the wholesalers' estimate in turn is better than that of the manufacturer.

Other advantage of this method is that the sales persons when given the responsibility of finding sales estimates start feeling that they are being treated as a part of the management team. These estimates often improve relations between management and the sales staff.

There are certain drawbacks which are also associated with the method of sales force estimates.

The major drawback is that the sales people underestimate the sales potential of their territories which reduces their sales quotas. These reduced sales quotas, once exceeded, will in turn provide them better bonuses and commissions. These estimates of sales motivate sales people to consciously or intentionally underestimate their territories' sales potentials in the hope of getting low quotas and thus better bonuses.

Another drawback of this method is that the management takes a portion of sales peoples' time for working up such sales estimates. This time, if spent on making actual sales, can increase the total sales of the company.

3. Market Survey Market survey method is especially very useful when the pro-dot in question is new and there is no sales record of the product available. Market surveys may encompass the survey of consumer intentions and test marketing in connection with certain new products being launched by the company. In

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both, the consumer intentions survey or test marketing, the investigator finds out whether the new product will be widely accepted in the market and whether it will be profitable to launch the product in the market on a commercial basis. The investigator estimates the sales of the new product on the basis of customers' intentions. He tries to determine whether the people who are provided with the free samples or price deals pertaining to the product, repurchase the product after its trial or use. The major disadvantage of this method is that it involves a rather artificial environment. The people who show their intentions to purchase the product at the time of survey, may not purchase it when launched commercially.

4. Objective Extraction Subjective methods (like executive jury and sales force estimates) and market surveys (like consumer intentions and test marketing) could be used to estimate sales either of existing products or entirely new products. When product has a sales history behind it, objective

Extrapolation method is used to estimate the product's sales. In this case, the sales history provides a starting point for the sale forecasting. Time-series analysis is the most commonly used technique in such circumstances.

Time-series Analysis The time-series analysis is based on the rationale that certain economic activities are said to vary with time, which has the same effect mathematically as the saying that the change in economic activity is caused by the change in time. Basic methods used under time-series analysis are: extrapolation by scatter diagram, extrapolation by short-cut formula, and extrapolation by linear regression.

1. Scatter Diagram: The most meaningful and easiest way of extrapolation of time-series data is through the use of a scatter diagram. Sales and time are plotted on a graph paper and thus a diagram appears. With the help of the shape of scatter diagram, future sales are predicted. In the case of points lying alongside a straight line and rising upward, we can say that sales during the future will be having an uprising trend. If the points he scattered all over, then it is difficult to find out the trend in a clear manner.

2. A short-cut formula can also be used to predict future sales. This formula of estimating future sales is given as under: This year sales Next year sales = This year sales x

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172 Last year's sales

3. Extrapolation by linear regression is carried same lines as the scatter diagram. The time along Xaxis and sales along Y-axis. Then, we use the technique of linear regression. The ultimate result of the least squares analysis (linear regression) is formation of the equation: Yc = a + bX

Where X and Y are the variables and a and b are the regression coefficients. For details on linear regression analysis, the readers should consult some standard statistics books. By knowing the values of X on Y or Y on X, which represent the future sales.

The components of time series analysis are: trend seasonal and erratic variations. The effects of these variations are adjusted by the use of indicators, e.g., volume of production, unemployment figures, inventory backlogs, and so on.

Figure. Extrapolation by Linear Regression

b =the slope showing the rate of increase or decrease ΣXY b= Σx

2

a = the intercept, the value of Y when X = 0 (or the point where the line crosses the Y-axis) ΣY

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a= n

SALES ANALYSIS Sales analysis has a wide variety of connotations but in the ensuing text, we consider this term as the actual analysis of sales results.

There are several basis to carry out sales analysis. The most widely accepted basis of sales analysis includes: territory, product, customer, and order size. The basic purpose of conducting the sales analysis is to determine the company's areas of strengths and weaknesses. We try to find out those products which are producing the greatest volume of sales. Also the products with the least sales volume are singled out. We also attempt to find those customers who are the biggest buyers of the company's products and help in producing the best sales results. The size of order which accounts for the chunk of the firm's business, is also determined. With the help of such information, we enable a company to concentrate its sales effort in such a manner that brings it the greatest return on Investment. In the ensuing text, each of these four bases of sales analysis have been considered for discussion one by one.

1. Sales Analysis by Territory We consider the invoice as the primary sales record for the purpose of analysis. It contains the following data which are essential to sales analysis: 1. Customer's name; 2. Customer's location; 3. Products sold; 4. Quantity of each item sold; 5. Price per unit; 6. Total (rupees) sales per product; and 7. Total (rupees) amount of order.

We may sometimes add other information about the customer, size, type of business, user or middleman, chain stores, independent stores, etc.

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First of all, the geographical control unit to be used is decided. Districts are the typical choice for analysis as they form the sales territories when combined. Moreover, data is easily available from the district levels because this is generally a very small unit of a sales territory. It also makes comparisons between potential and results of sales more simple because both are in the same units. Sales are tabulated by territorial units. The results may be compared with sales potentials previously developed.

Those territories in which the sales fall below potential can then be given special attention. Is competition usually strong in these areas? Has the lesser selling effort been put there? Is the sales force weak?

Studies of these points would help the company bolster its weak areas. Sales effort can be concentrated where it would do the most good.

2. Sales Analysis by Products It has been observed that a company's product line or product - mix grows over a period of time with relatively little planning. The result is a line, which includes some products which have very good image among the customers and contributes a great deal of sales amount to the total sales volume.

Whereas other products are very weak in respect of image and hence, produce a little bit of the total sales volume. It is essential to identify those products which an and exploit their further potential while the weaker products may be improved in quality or dropped altogether from the line.

The products may be classified into categories to and spot the weak strong products and sales results of each of the categories must be compared with the potential of these.

Product analysis may be particularly effective when combined with area analysis. In such a study, one may find that in a particular area A sales is above the quota and in B it is less than the quota.

Otherwise, sale of product A is more than so that product B is lesser than the sales quota. Analysis of this type can help in spotting sales areas and products in a particular area. Thus, constructive measure can be taken to safeguard it.

3. Sales Analysis by Customer Such analysis may show that a small number of customer may account for a large amount of sales in a particular area. The concept and practice of distribution cost accounting should then be applied to determine the smallest customer. It is profitable to keep such customers on the account books of the company. Those this size may be dropped though with profit. In many cases analysis of this sort combined with a study of sales calls will show that as much time is spent on the small accounts as on the larger ones. Greater concentration of sales effort on the larger accounts may well increase the sales.

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Analysis by customer combined with analysis by area and product may be particularly helpful in pinpointing weak spots in the sales programme. Some areas may not be developing sales with a particular type of customer that has proved profitable in other areas. This may be particularly true for individual products. When this is discovered, remedial action can be taken because the precise point of weakness is known.

SELF – EVALUATION QUESTIONS :

7. ___________ is the one of the sales forecasting method.

8. Sales potential analysis is also called ____________.

9. ____________ is based in the idea that if a given.

ANSWER : 7. Jury of executive opinion.

8. Market analysis.

9. Corollary data method.

4. Sales Analysis by Size of Order Sales analysis by size of order may be helpful in finding points of good sales volume but low profit. Sales are classified by the size of the order on which they originated. If cost accounting data are available which will indicate the cost of securing and handling an order, it is possible to determine the sales which are being made at a loss. This analysis may be pursued to find new areas, products and customers where small orders are prevalent. This lead to action in setting a minimum order size, to training salesmen to procure larger orders, or to drop certain products, areas or customers.

SALES POTENTIAL Sates potential analysis is also termed as market analysis. A set of geographical sales potentials can be defined as “relative measures of total possible sales of a commodity or a group of commodities under specific marketing conditions at a stated time, in a specified geographical area relative to the total area under consideration. The measure is concerned with the relative level of possible sales.

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Possible sales enter into the consideration of geographical sales potentials merely as a concept and no (rupee) values need to be attached to it."

Here product substitutes and the tendency of the consumers to engage in considerable degree of substitution are the factors of great significance. The extent of substitution and conditions under which such a practice on the part of consumer develops is worth nothing al this juncture. The substitutes which are closely related with themselves and with the product in question have a substantial influence on the estimation of the sales potentials. Therefore, it is advisable to take note of such substitutes and decisions regarding their inclusion or exclusion in potential estimates, may be made well in the start For example, M/s Hindustan Lever Ltd., introduced a new product "HIMAPEAS'. But while estimating its sales potential "green peas' available in markets at cheaper rates were not taken into consideration. This might have been one of the reasons that the new product failed miserably in the market at cheaper rates because the people purchased green peas than the high priced packaged frozen peas. The time of launching of HIMAPEAS was also wrong because in winter green peas are available at cheaper rates.

Sales Forecasting us. Sales Potential Although the terms sales forecasts and sales potentials are used interchangeably yet, they are not necessarily the same things. By using these two terms interchangeably, we generally misuse the term sales potentials. The dictionary meaning of potential is "existing in possibility and capable of development into actuality. Thus market potentials. typically refer to total sales possibilities. Several different potentials may be considered, depending on what conditions are stated. For example, there can be a potential relating to conditions of use, e.g., the amount of toothpaste which would be used if all persons using toothpaste brushed their teeth after every meal.

Another potential could be brushing only once during a day, and so on. Therefore, the word potential carries no meaning unless we know the conditions under which the term is being used.

On the other hand, sales forecast, is the prediction of sales of a particular product, company, branch office, or other unit for a given period of time.

Major Uses of Sales Potential Sales potential can be put to several applications in the field of marketing management. There are six main uses of sales potential as given below: i.

Defining the sales territories.

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MARKETING RESEARCH ii.

Allocating the funds for advertising and promotional efforts.

iii.

Setting the sales quotas.

iv.

Designing the distribution channels.

v.

Deciding the location and size of the plants, new sales offices and warehouses.

vi.

Determining the strategy for market entry.

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All the six benefits of sales potential have been discussed one by one as follows:

(i) Designing and Assigning Sales Territories The estimates of potentials form the basis for defining and designing of sales territories. For each sales territory, an optimum sales potential is sought by a particular firm. If the potential is below the optimum level, the salesman is unable to use his time to his advantage. On the other hand, if the territory has too much of potential it is difficult for the salesman to manage it all and sales may be lost, Therefore, the salesman gets almost equal potential territory as compared to others. Various factors influencing the optimum sales potential are: (1) travel distances, (2) average size of order or geography, (3) number of customers, (4) the product line and its nature, and (5) nature of competition. It is, however, with experience that a company can develop a good measure of the optimum potential. It is essential for a particular company that the extreme cases are judiciously handled. In such extreme cases, the territories must be redefined and redesigned to keep an optimum sales potential in each territory so that each salesman has an equal potential territory. Thus the salesmen appraisal can be carried out effectively.

Essentially, the elimination of weak areas and concentration on stronger ones can increase sales and at the same time reduce the costs.

(ii) Allocation of Sales Efforts Once the sales territories are designed, we proceed ahead for allocating sales efforts to each territory. Suppose a product is being sold nationwide in the Indian market: Should a 20 per cent of the selling effort be allocated to the Mumbai market and a 10 per cent to Hyderabad market? Should Mumbai have several times sales push as compared to Hyderabad? Should the sales effort in both of these markets be increased or decreased relative to India as a whole? Decisions on these issues should be made on comparison of the potentials in these two markets.

Funds for all selling efforts, viz., sales force, advertising, and sales promotion and publicity should be allocated only after consideration of potentials. In the case of national advertising, this can be done by

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comparing circulation data (readership, viewing, and listening) for media with market potentials. If the product has a high potential in Southern India, media with heavy concentration in the Southern region can be used. The local advertising expenditures can be matched even more closely with potentials.

Advertising can be allocated to each market in proportion to potential. For example, if a firm like M/s Hindustan Lever Ltd., sold nationwide and used national advertising, it should be supported by local advertising in the local/regional newspapers in the key markets with high potentials.

Potentials is not the sole criterion for allocating sales effort. The primary usefulness of market potential is to focus attention on the relative worth of individual markets. But a firm cannot depend totally on market potentials alone because the potentials do not take into consideration the competitive structure of the market and the firm's ability to exploit that market. For example, Mumbai may represent a high potential market to a given firm but competition may be so strongly entrenched that the expenditure needed to gain a satisfactory brand share may be too much.

Ideally, the firm needs to augment its potential data with information about the competitive structure of the individual markets. One firm, for example, ascertains the following information about each of its markets: 1. The number of brands in the markets and the market share of each.

2. The trend of each major brand's market share over the past 3-5 years, 3. The amount of money spent by the major brands on advertising currently and over the past 3-5 years.

4. The price structure prevailing in the market.

5. The distribution structure with particular reference to the leading retail outlets and exclusive distributor franchise.

6. The availability of local-station/radio/television time and the space in local/regional newspapers.

In view of these points plus the company's past experience in the market plus the data on market potential play a dominant role in allocating sales resources to various markets.

One more factor to be considered is the market responsiveness to the input of the firm. Market responsiveness is the function of sales potential, competitive structure, and the firm's input into the market which in turn includes managerial ability and adequate finances. Thus the firm must appraise its

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capability both qualitatively and quantitatively. The firm's market position is also required to be considered in allocating sales resources.

With the help of the above listed factors, it is easy for a firm to allocated optimally the sales efforts to various markets. The exact measurements are a far cry but it helps in arranging various markets in order of likelihood of response to the sales effort and a satisfactory level of distribution of sales funds may be achieved which is our sole objective here.

(iii) Setting Sales Quotas There is a need to set sales quotas to each of the sales territories. While setting the sales quotas, sales potential of the concerned territory should be kept in mind. Before we start setting quotas the estimates of sales potential, sales performance, change to be made in the amount of supporting sales efforts during the coming year, and anticipated anticipated activities of competitors must be considered.

The sales quotas are set for each territory and each salesman. Quotas may not be same or of the relative size of sales potential for that territory. Sometimes, a territory might have a very large potential but owing to local competitors, the firm in question may not get the desired share of market. For this reason, the firm must set its sales quotas in view of the competition (competition among company's own salesmen).

Sales quotas set in the light of sales potentials fur better basis for measuring the efficiency of the sales quotas set by the old rule-of-thumb that is last year's sales plus five per cent. If two salesmen turn the same annual sales are usually paid about the same and are held in equal esteem by the sales manager. But there is a need of in-depth analysis in such cases to find out actual performance. If market analysis shows that salesman X has a sales territory with far more potential that salesmanY. Naturally, salesman X is liable to produce more sales as y. The sales manager should not suddenly decide that salesman X who is turning more sales is superior than Y. Instead of this, the manager may test the two salesmen's efficiency by mutually exchanging their sales territories. It may be due to the simple reason that lesser sales potential might have led saleman Y to produce a lesser sales and vice-versa in the case of X salesman. Comparative pictures of sales potential and sales of two salesmen in two shown.

Salesman X Sales during last year Territory potential Per cent of potential

40,000

Salesman Y 20,000

1,60,000 25%

1,00,000 25%

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The difference in the percentage of potential obtained may be because of different abilities, concentration on different types of customers, different use of advertising, different frequency of sales calls. etc. Further, study should result in better results in the territory of Y. In fact, salesman X is superior.

The total firm sales may be increased by putting him in the territory with the greater sales potential.

(iv) Designing the Distribution Channels Depending upon the sales potential existing in each sales territory, we can design the sales channels for different territories. As the potentials for different territories may be different so we have to design the trade channels keeping in view the sales potential figures. More middlemen may be needed in large potential territories where as we can resort to direct selling in smaller territories with lesser or keep a very limited number of middlemen as compare potential territories.

(v) Deciding the New Plant Location and Size With the knowledge of sales potential, we can find out the exact location of the plant and its optimum size. As we know from the sales potential figures that what potential exists for our product, keeping in view the potential figures and competitors sales we can decide what geographical location our plant should have? Whether it should be located near to a particular market(s) or at the central place covering all the markets?

(vi) Strategy/or Market Entry If we know the market potential, we can decide about the market entry time and positioning of our product in comparison to our competitors. We may enter the market earlier than our competitors if we want to skim the market or penetrate deeper into the market.

METHODS FOR DEVELOPING MARKET POTENTIAL There are two methods available for estimating market potentinsls. The first is direct data method which involves the use of direct data. That is data on the actual product for which one wishes to potentials. The other method involves the use of coralline data related to, but different from the product at hand. Corollary data method may use single or multiple factors. These factors can be combined in a number of ways. The important variation are discussed in the ensuing text.

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1. Direct Data Method We can use the total sales data of a particular commodity as the basis for estimated market potentials for one brand of that product. With the help of these, a combined picture of the total industry emerges. This composite experience picture takes into account not only the characteristics of the individual markets (population, income, buying habits, etc.) but also the past sales efforts of the firms comprising the industry are considered.

In this method, we break down the total industry sales territories. These territorial totals are expressed as percentages of the industry sales for the total market covered by the firm. These percentages are considered as the measure of the relative pi present in each market.

In me absence of such data on the individual commodities, these may be developed by analysing the data on broader categories of products. For example, data for soaps can be procured from the chemicals. The principal advantage of this method in using total industry sales to measure market potential is that the actual results (sales) are used. The method is straightforward and does not require as much clerical work as do some of me other methods.

Several limitations are also associated with this method. These limitations are: (1) There are very few commodities on which total sales data are available. If at all available, its refined classification up to territory level may not be there; and (2) me past sales are used to indicate market potentials, i.e., no attention is given to the current potentials except they are revealed through (lie past experience.

In the U.S.A., S.I.C. (Standard Industrial Classification) System/ is used to categorise national industries in order to procure data. It is then made available to the people concerned.

2. Corollary Data Method The corollary data method is based on the idea that if a given series related to another or to a group, the second series may be used as measurement of distribution of the first. Two such methods as dismissed below are used.

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i) Single Factor Indexes These are the most common and simplest of the corollary methods used for market analysis. A typical example is the use of the sales of one product to indicate the market potential of another. This is the most apt to be satisfactory if the two items have a closely related demand, that is, the demand for one is derived from that of the other or the demand is complementary.

Automobiles' replacement of parts offers a good illustration of derived demand. The demand in any area is closely related to the number of cars of that type in the area. Therefore, the number of cars of a given make can be used as an index of the potential or spare parts for that car.

It is creditable to mention here that procedure is essentially the same as for the direct data. In using corollary data of this type, the researcher must be cautious to see that the two series are actually related. If they are closely related, only in that case this method will be providing the desired results. We may also use factors other than the sales of related products in the corollary data—single/actor method.

For example, population and household data are frequently used to indicate market potentials. The reasoning back of this use of population data is that to where people our sales can be made. Therefore, if one area has twice as many people as another, it has twice the sales opportunity. Total retail sales are often used as an index, since it is reasoned that such data indicate actual consumer purchases. Sales of specific | types of store such as food stores or drug stores, may be better of in many cases. For obtaining such required data on has to see the related literature which contains or publishes such details.

Although these indexes are very useful yet, they are not free from limitations. Simple indexes have one general weakness. It is hard to establish the relationship between the index series and the product at hand. To be sure that the two have a relationship, it is usually necessary to compare the two series over a period of time. It is the tendency industry sales are available for this comparison, it would be wise to use the direct data method.

If it is found that there is not a close relationship between the index series and the company's sales, in such circumstances the index series may exhibit a mistaken impression of the relatives potentials in various markets. For example, if we consider the population it fails to account for the differences in purchasing power, therefore, this may not be a good index for many consumer items. It is the among retailers to concentrate their stores in urban to underestimate the purchasing power of rural markets. It is observed that sales by store types do not account for sales of "non-type� products. For example, we find that many grocery stores sell a variety of drug products, viz., Anacin, Aspro, etc.

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(ii) Multiple Factor Indexes It is noticed through various studies that all market potential indexes are not produced or designed from a single Many of them are developed by combining various factors. Sometimes, these combined factors may number as many as twenty. Particular companies are responsible for designing many of these index in order to measure market potentials of their products. Sometimes, industries may also design such indexes for the above mentioned purpose. There are a number of other indexes which are developed by independent organisations like marketing research agencies. There are two types of indexes included in this (letter) category, viz., (a), special multiple factor indexes, and (b) general multiple factor indexes. Both of these indexes are discussed in the ongoing text.

(a) Special Multiple Factor Indexes: These indexes are designed to measure relative potentials of different markets for a particular product. Several factors influencing the sales of a given product are taken into account in special multiple factor indexes. This is distinct advantage of these indexes. The primary objective of constructing these indexes for specific products is to facilitate the measurement of potential in a most accurate manner. However, certain limitations are inherent in this type of indexes.

These limitations make less foolproof than they appear. When these indexes are developed by the individuals then they use their best judgment in choosing the factors for clubbing them together.

It is, however, difficult to prove whether the judgment made in this regard is sound enough or not.

Also it becomes quite difficult to find accurately that how many factors should suitably be used? Once the factors to be used have been determined, the question facing the researcher is—how to combine these factors in the best manner?

In order to remove some of the subjective aspects of the multiple factor indexes it is essential to use multiple regression analyses. These subjective aspects include determining of the relative importance of the alternative factors and the weights to be assigned to each factor. But since the dependent variable ( geographical sales potential) is not known, it is not possible to obtain an estimate of the regression equation.

To remove this drawback company sales may be considered as a substitute for sales potentials.

This is done more frequently by the researchers to overcome the various operational difficulties.

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(b) General Multiple Factor Indexes: These days a number of business concerns are developing the general multiple factor indexes. These indexes are designed as indexes of the consumer buying power. In general, these Indexes are presumed to be index of the market potential for different consumer products.

Three factors, namely, income, retail-sales and population are taken into account for constructing this type of indexes. Investigator has to attach weights to these three factors. Assigning of weights depends upon the situation prevalent while designing the general multiple factor indexes.

However, on comparing different indexes one can find that there exist significant variations in the potential for the same markets. In such a situation of dilemma, it is extremely difficult to select the appropriate index for a particular use. The only 'solution e come this situation is to compare the indexes with actual sales and to select the one which move closely approximating the sales. But in the situation too, the selector has to partially measure the sales potentials by past sales. Therefore this solution is not co from limitations. While considering the limitations, we out the major weakness of this type of index which pc being of extermely general nature. That is this index is to measure the potential of a specific product category.

In this type of index, we rely on the assumption that the relative market potential in a given market is the same for all consumer products. This assumption may not hold true. For example air-conditioners have a larger sales potential in hot climate areas whereas overcoats in the cold climatic condition. Also a sell better where income is high whereas potatoes generally do not Thus, while general indexes are available for quick an they have little use to recommend them over special indexes. These limitations must be kept in mind while using these for determining sales potentials.

Use of Surveys to Determine Potentials Sometimes, we may use surveys for determining sales potentials deferent markets. This procedure refers to projecting the samples results to the total market. This may be carried out through the use of secondary data, that is, published market data. In case the secondary data are not available, the primary data. may be collected interviews, telephone interviews, or mail surveys. The faces a problem regarding the procurement of accurate on purchases from the firms included in the sample for Generally, it has been noticed that the Indian firms are to reveal such information, though this tendency firms is changing slowly. These days, with the of management, the Indian companies are real of interaction with the researchers and making facilities available to them.

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In nutshell, we have discussed sales forecasting, sales analysis and sales potential in this chapter for the benefit of the readers and students. The knowledge, skills and compentencies to carry out sales control research have been imparted to them through this text. They are advised to use the knowledge judiciously so as to apply it in marketing decision making.

REVIEW QUESTIONS 1. What do you understand by the term sales control research? Why is it necessary? What are the different aspects of this research?

2. Describe the procedure of sales analysis and market analysis of by giving marketing research.

What are its methods? Give their merits and demerits.

3. Differentiate between sales analysis and market analysis by giving suitable examples. Also describe various methods used for these researches. Give their advantages and disadvantages.

4. Highlight the concept of market analysis. What are the uses of market analysis? How can it be carried out? What are its limitations?

5. Define sales forecasting. Describe various methods to forecast sales of a company's products.

Also describe merits and demerits of each method of sales forecasting.

6. What do you understand by the term advertising research areas are covered under the advertising research?

7. What is pre-testing? What steps would you take to pre-advertisement? What are its merits and demerits?

8. Describe various steps required to be taken while post-testing an advertisement. Give its advantages and disadvantages?

9. Highlight various aspects of media selection research. What are different methods used in this regard?

10. What is a product appeal? Describe various types of appeal used in advertising. How can you investigate the product appeals for different consumer products?

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UNIT – V MARKETING RESEARCH REPORT Introduction Once the research data are collected and analysed, it is the responsibility of the researcher to prepare a report, thesis, or dissertation which puts forward the research results systematically before the target audience. This is the task which the researcher starts after he has computed the results and drawn out the research findings. It is noticed that without an effective presentation of the research findings, the value of the fine information is significantly diminished. In the present chapter, we attempt to suggest the researcher an effective way of presenting the research results. We shall discuss research proposal, significance of written and oral presentations of research results, and steps in preparing written reports.

RESEARCH PROPOSAL The research proposal is the first step in any research project. The research proposal deals in brief with what will be done, how and why it would be done whereas the final report deals with what was done. Thus, the reader may be puzzled to see the presentation of research proposal at the end of this book. Actually all the presentation part of the research is discussed here so this is the reason why the research proposal presentation (which otherwise should have been presented in the beginning of this book) has been taken up in this chapter of this book. Following procedures must be adopted while presenting a research proposal or synopsis. The research proposal is the small report which is to be submitted to the client for approval. It is to ensure that both the parties the researcher and the client understand the purpose of the study and methods that will be used in its conduct. It also highlights the estimates of cost and time involved for the conduct of final research. The objective of the proposal presentation is to persuade a sponsor to favor a particular approach to the problem and to pay for the problem solution. Persuasion invariably means providing the sponsor with information leading to the desired conclusion. Many knowledgeable research sponsors have established proposal guidelines for research organisations seeking funds.

Following is a general approach which may be followed in preparing a research proposal: 1. The cover must contain the name and address of researcher 2. The title page must contain the title of the research project the name and address of the principal researcher, the official authorising the research proposal, the person to be contacted on administrative and fiscal matters.

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3. Thereafter, the need summary, objectives, outcome, limitations and scope of the study must be given.

4. The contents of the research proposal are presented at this juncture. In this section introduction to the research project identifying the conditions necessitating research are given with Research objectives and hypotheses must be stated. Thirdly, a detailed description of the methodology to be given with technical details. A thorough evaluation of limitations and feasibility of the method is also proposed. At me fourth place of this section, a detailed review of literature or a review the work already done in relation to the problem is given 5. Various questions which are required to be answered be stated, i.e., -various aspects discussed with regard to the problem.

6. If sampling is involved, the sampling plan used is stated.

7. Thereafter the results of the pilot survey conducted to test the questionnaire and validity of the project are described.

8. The scheme of chapterisation must also be given here.

9. The. -biographic sketches and pertinent bibliographic s for professional personnel to be involved in the proposed research project must be given. This may be done many people are to be involved in the project completion. Generally, a team is to be suggested.

10. Various facilities and equipment to be used and required for the research project, must be explained.

11. If contracts are to be involved in conducting the research with other parties, they must be stipulated (especially regard to cost sharing).

12. The Lime required to complete the project must be mentioned and justified.

13. A budget estimate must be prepared with the estimated cost breakdown for major activities of the project.

WRITTEN REPORTS After the research proposal is approved by the sponsor of the research project, the research is conducted and results are presented form of a report. The research reports can be of two types: (i)written reports; and (ii) oral or verbal reports. In this section, we take up the written reports for discussion.

Following are the ingredients of a good research report format with regard to a written report.

These are only ingredients not the actual organs of a written report. These may vary depending upon the

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form and contents of a research project. Generally, (his approach can be followed by a researcher for presenting his/her research results in a written report form.

1. Title page 2. (a) Contents (b) List of tables (c) List of figures 3. Foreword 4. Preface 5. Letter of transmittal 6. Introduction 7. Review of literature 8. Statement of objectives and hypotheses 9. Methodology: (a) Research design (b) Data collection method(s) (c) Sampling (d) Field work (e) Analysis and interpretation (f) Limitations (g) Scope 10. Results and findings 11. Conclusions 12. Recommendations and suggestions 13 Summary (Abstract) 14. Appendices 15. Bibliography. Each of these ingredients is discussed in the following text:

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1. Title page The title page must give the title of the research project. It must give information about: who prepared, who supervised it, who sponsored it, date on which it was presented and place where it was presented.

2. Contents (a) The chapters, sections, and other headings used in the and the pages on which each of them is found, are listed here report (b) List of Tables All the tables used to present the data must be given along pages on which they appeared in the report.

(c) List of Figures All the figures, charts, diagrams, pictures, etc., given within the report must be indicated along with the pages on which they have appeared.

3. Foreword It says a few words on the problem and the author. The foreword is generally given by a person whom the researcher thinks is highly a master-mind (expert) on the pursued research project. The researcher may also be introduced in this section. Sometimes about the author (researcher) is also given on the inner from flap (last page). Sometimes, it appears at the end of the report.

4. Preface Preface gives a general introduction to the project and says a few words about its importance.

Then a scheme of chapterisation is given. The scheme of chapterisation contains a brief of the c presented in each of the chapters of the research report. At the preface contains a section of acknowledgements. Here searcher expresses his/her gratitude to all those who helped in completing the research work. The researcher puts his place and date at the end of the preface.

5. Letter of Transmittal This is a certificate from researcher to the authority sponsoring research and it describes that the work is original and satisfactory.

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6. Introduction It gives background of the problem, importance of the problem dimensionality of the problem, previous research done and relevance to the present work. The problem at hand is fully explained here.

7. Review of Literature A review of earlier researches done in relation to the research project is given in this chapter. The research gap is determined need of study is also justified in this section. All studies carried earlier are listed out here in a sequence.

8. Statements of Objectives The objectives established and to be accomplished in research design are to be highlighted in this section. If some hypotheses be tested in the research, they are also stated here.

9. Methodology This section deals with the research design to be used, data collection methods to be used, sampling techniques to be used, to be carried out, analysis and interpretation to be done, inherent in the project and finally, coverage (scope) of the work is given in this section.

(a) Research Design It gives details about the exploratory, explanatory or descriptive or experimental nature of the research work. Why a particular design is used and what is its importance, is also put in this section.

(b) Data Collection Method Whether secondary or primary data is to be collected is explained. A copy of the questionnaire or schedule used is to be attached in appendix and its importance is highlighted in this section. (c) Sampling Plan Who is to be surveyed (sampling unit); how many are to be surveyed {sample size); how are they selected (sampling design): and how are they reached (sampling media). All these c to be given in this section.

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(d) Field Work This section deals with the details of the field work to be carried out and methodology for administering the questionnaire or of secondary data. Not-at-homes, refusal to co-operate, respondents bias are also highlighted. These create problems in the data collection and subsequently, give rise to data collection errors. These errors are to be adjusted and explanation regarding their adjustment in the research work is required to the given.

(e) Data Analysis and Interpretation Various statistical tools to be used (like averages, percentages, measures of dispersion, correlation, regression, and different statistical tests) to analyse and interpret the collected data are mentioned. If advanced techniques like multiple-regression analysis, discriminate analysis, factor analysis, and cluster analysis (which arc multivariate techniques for analysis of data) are to be used, these must be mentioned and justification for their use must ward in this section of the report.

(f) Limitations Various constraints (viz., finance and time) facing the researcher which determine in detailed analysis of the problem may be pointed. Also various limitations or demerits associated search problem must be pointed out in this section.

(g) Scope What aspects are to be covered in the research are to be highlighted in brief in this section of methodology. A justification for research work to these limiting the research work to these limit is to be provided in this section.

10. Results and Discussion This part of the research is also called analysis and interpretation. It forms the body of the written report. Here, results and findings are given and discussed. This part contains an assortment of tables, charts, graphs and an organised narratives of the results. Each table, chart, graph and picture is followed by a detailed summary interpreting that. The study objectives must be kept in mind while presenting results. All the information collected need not be given in the results. Only those information which have bearing on the objectives of the research should be included in the report. Moreover, the presentation must be within the prescribed limit as mentioned in the earlier chapters of the report.

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11. Conclusions The researcher should consider each of the objective and conclude the findings in view of that.

Attempt must be made to show through conclusions that the set objectives have been accomplished.

Therefore, all the conclusions must be put forward in view of the objectives of the research. If some objective is not fully accomplished of data, it should be explained clearly, rather than disguising that.

12. Recommendations For making recommendations, there must be a support from results of the study.

Recommendations must not be made just on utopian basis. The resources of the company to which recommendations are being made must be kept in mined. It should not be a very expensive proposition which company cannot implement owing to lack of funds. In nutshell; the recommendations must be such that could be implemented.

13. Summary (Abstract) A brief summary of the report may be given at the end of the research report. In this section, the scope for further research must also be highlighted. An abstract is a brief of the research given in the beginning of the presentation.

14. Appendices The information which are not directly related to the main body of the research report should be included in the appendices for those readers who want to go in-depth of certain aspects of the research work: This information are either too detailed or too much specialised. This information may encompass a detailed statement on the sample design, formulae used to determine the sample size; detailed statistical tables, the questionnaire, the detailed instructions for the interviewer and respondents, etc. If this information hinders in any way the understanding of the report should not be taken to the appendices. As such certain tables given as appendices may be explained in detail in the text of the report. So these tables must remain in the text itself. Because in their absence the text cannot be clearly understood by the reader.

15. Bibliography Some researchers include bibliography in the appendices. But, it-is wrong and it should be given at the end of research-work. Some references given in the bibliography might not be used in the research

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work. But, they are given for the purpose of the future researchers' so that these can also be consulted, if the need be. Because of this reason, the bibliography must be relegated to the end of the research work.

FACTORS IN ORGANISING A WRITTEN REPORT Following important factors must be kept in mind while writing a re-search report to make it more effective:

1. Audience to be Satisfied The background and interest of the audience for the report is to be analysed before preparing it. If the audience is of general background and interest then a popular report must be prepared. In a popular report, basic findings are presented in a simple manner. Because the audience is not interested in technical details of the project such as methodology, the technical aspects may be curtailed in size in such reports.

On the other hand, if an audience of technical people is there, then the report must be in a technical language. Because the audience is interested more in the technical aspects rather than in descriptive aspects. This report may be called a technical report.

There may be a third type of audience which contains mix of technicians and generalists. In such a case a mixed report be prepared so that both the groups could understand its con I and read it with interest. In such a report the technical details be given in appendices and summary of findings (with reference of appendices at the appropriate points) are given in the general body of the report.

Sometimes, keeping in view the different types of audience involved to which a report is to be presented, separate reports for each group of the audience may be prepared. For example, if a firm wants to computerise its inventory system, separate reports are to be prepared for different groups. For the top management a simple language report is to be prepared depicting the procedure involved in the switch-over from the manual to computerised system and costs involved. Also how the computerised system work, is to be illustrated in a simple manner. To the technical staff of production department details of technical complexities to be highlighted in the report. Similarly, to the accounting department a detailed costs analysis is to-be given in the report.

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Irrespective of the audience, the overall language used must be simple and brief. This aspect is the backbone of a good research report.

2. Objectives to be Accomplished While preparing a report, the objectives to be accomplished must remain in the mind of the researcher. The information should be put in such a manner that the established research objectives are achieved. Moreover, if some hypotheses are required to be tested, those must be kept in view while presenting the research results. The data must be evaluated in view of the research objectives.

3. Report Format to be Used An acceptable format must be used while presenting the research results. The format given earlier in this book must be considered and if need be it may be modified, depending upon the situations and research topic.

4. Outline to be Developed Before the report is finally written, an outline for presenting its different contents in different sections must be decided carefully. The outline, if prepared early, will facilitate the placing of respective data in appropriate places in the report.

5. Deciding the Final Writer Who should write the report? A person having good command on the written language and technical aspects may be deputed or consulted for this purpose. As far as possible, the researcher must write the report himself because he is aquainted with all the aspects of the research work. In no case, more than one writer should be selected for writing a report. Because it creates a problem for the readers to understand the contents of the report. This may be due to the fact that no two persons can write in a similar style. Each writer has his own style of writing. If the researcher is not very good in language, he should get the report edited from a person having good command over the language and the subject.

6. Using the Graphics Whenever some graphics (i.e., charts, tables, graphs and pictures) are included in the report, care must be taken in their presentation. Sometimes, the audience may be such that will not even see the graphics but use only the written details. The details of each graphic must be given with due care. On the

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other hand, certain people or audience might be interested only to see and understand the report through graphics. Then graphics must be presented with all technical care so that they become self-explanatory.

More Suggestions for Graphics Presentation 1. There should be a moderate use of graphics. Two many graphics tend to overwhelm the report.

Fewer graphics usually result in each getting more attention from the reader.

2. Don't try to convey too much information through a single graphic. It is better to use two simple graphics than the one that is complex to interpret.

3. Tie graphics to the written presentation by placing them adjacent (through exhibits and annexures) to the section of the report in which they are discussed.

4. Recognise the strengths and weaknesses of various types of graphics, simple tables, time diagrams, photographic, pie charts, etc.

Sometimes, different types of graphics may be used for the presentation of the same data.

7. Length of the Report The length of the research report cannot be pre-decided. Sometimes, researchers or research students ask the question: what should be the number of pages in the report must not be pre-decided because it depends upon the contents covered in research work and the availability of data. It also depends upon the type of audience namely, popular, technical or a mixed audience.

8. Terminology Used Always an attempt should be made to use simplest possible language in the report. It does not mean that technical terms must be sacrificed altogether. But whenever such terms are used and explanation (glossary) must be given with them or at the end so that all the type of readers can comprehend the presentation easily. Because it is the reader, not the writer, who dictates the style of language. So we must we must strive for simplicity by using an all understood language.

9. Objectivity The presentation must not be to get occasional kudos from the sponsoring authority or organisation. The researcher must have the courage to present what he feels convinced is right and should defend it by all means. In most marketing research studies, it is observed that the researchers

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slant their results according to the choice of sponsoring authorities. The objectivity must not be sacrificed in research at any cost.

10. Selectivity All the information cannot be presented in the report. The researcher must select the pertinent information which is necessary to be presented. Other information may be deleted while preparing a final report. Otherwise, the report will become very bulky and the audience may not take interest in Its contents. The information which has direct relevance to the problem must only be retained the report.

There must be an attempt to land on the actual problem directly while making a research presentation.

VERBAL REPORTS Often, the researcher is asked to present his research results in an oral manner. This can be done either by telling to the interested parties the research results in a face-to-face discussion. Or the results must be presented with the help of visual aids to strengthen the arguments by organising a seminar. The latter type of presentation is required when the audience involved is very large and elaborate details of the findings is required.

There can be two types of verbal reports: (i) informal verbal presentation; and (ii) formal verbal presentation.

It may be mentioned before discussing the oral type presentations that the necessity of the written reports may not be eliminated entirely by the verbal reports. Because even when verbal presentation is done the written summary of the findings is to be circulated amongst the audience beforehand. Now let us take up a brief discussion on the two types of verbal reports.

1. Informal Verbal Report This is a simple "sit-down and discuss" situation where much of preparation is not as significant on the part of the researcher. The researcher presents a summary of findings and the audience ask questions if some clarifications are needed on certain aspects. It is assumed that the audienzce has read the report before taking part in discussions.

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SELF – EVALUATION QUESTIONS :

1. ____________ is the first step in research project.

2. Research report may be two type _________, ____________..

3. List two research result of written report.

ANSWER : 1. Research proposal.

2. Written report, oral or verbal report.

3. 1. Title page, 2. Preface.

2. Formal Verbal Report A lecture or seminar is to be delivered first to a formal sitting audience by the researcher covering all the findings of the research work. The audience may ask questions and researcher answers them to the satisfaction of the questioner. Researcher may distribute a summary of findings before starting the discussion. It must be ascertained by the researcher beforehand that: (i) What type of audience is there? (ii) What is its size or number? (iii) Whether they are experts or laymen? (iv) Which of room facility available? (v) Is visual aids facility available? (vi) which portion of the aids should be selected for explanation? (vii) Which portions of the findings must be emphasised most? and (viii) What sort of questions can be asked by the audience?

So in the formal oral presentation a lot of preparation required on the part of the researcher.

He/she must be a very good communicator (orally) and able to handle any complicated questions asked by the audience with alertness.

In nutshell, we can say that there may be written or verbal or both types of presentations of the research results. The researcher must take the needed precaution while preparing a research report and its verbal presentation.

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FUTURE OF MARKETING RESEARCH Introduction The field of marketing research is growing by leaps and bounds since its inception in the beginning of the second decade of this century. Now the questions which hover over the minds of the specialists are: Whether the marketing research will go on growing with the same zeal and enthusiasm in the coming decades of 21st Century? Whether its importance will increase in the coming years of 21st century? Whether its role will decrease? Whether it will remain the same? What will be the trends in marketing research in the near future?

It is extremely difficult to accurately answer these and a host of other questions. However, we can make prediction about the future of marketing research after analysing various key factors influence its growth. With the analysis of these factors, we can depict the trend to a certain extent and then predict future.

The ensuing text concentrates its effort on analyzing the role of marketing research as a business activity, highlights various factors influencing its growth, depicting its trends, and predicts its future development.

MARKETING RESEARCH IS A BIG BUSINESS Since inception in 1911, marketing research has attained the status of a very significant business activity. Many marketing research firms are emerging. The new firms are making substantially huge profits through the operations of marketing research. Individuals such as executives, academicians and students of marketing are deeply involved in conducting various studies pertaining to different industrial and commercial organisations. These individuals are earning handsomely through their research assignments. The public sector corporations are also spending a lot on marketing research. Even public and private sector banks are taking a keen interest in marketing research. The government departments, e.g., Railways, Telecommunication, and posts & Telegraph are increasingly sponsoring research project to marketing research firms and individual marketing researchers. The research activity is not limited to corporate private sector. Several billion dollars business is transacted through the marketing research project every year throughout the world. In India after seeing the lucrativeness of marketing research assignments many management graduates (MBAs) after specialising in the marketing area are opting for careers in marketing research. Many of these graduates are joining business organisations as marketing research executives. Some of these graduates are starting their own marketing research agencies and for working as private entrepreneurs.

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MARKETING RESEARCH AGENCIES It will be useful to give a comprehensive list of agencies and organisations which conduct marketing research projects in India. These organisations conduct research on project-to-project basis from various organisations. These agencies undertake such projects on nominal charges from their clients. This list is only illustrative and no exhaustive. Most of these agencies also undertake advertising business. The list of MR agencies is as follows: 1. Indian Market Research Bureau of Hindustan Associates Ltd. 2. Operations Research Group (ORG).

3. Market Motivation Studies.

4. Market Research Data Processing Consultants 5. Marketing Research Advertising & Services.

6. Market Advertising Radio Services.

7. Marketing Advertising Associates Pvt. Ltd. 8. Indian Institution of Public Opinion.

9. Marketing and Industrial Development Association.

10. Marketing Services (India).

11. Market Analysis & Product Promoters.

12. New India Publicity/Calcutta.

13. Ogilvy Benson & Mather Pvt. Ltd. 14. Advertising and Marketing Associates.

15. National Advertising Service Private Ltd. 16. Sista's Private Ltd. 17. Ulka Advertising Pvt. Ltd. 18. Adroit Advertising.

19. Clarion Advertising Services Ltd. 20. Lintas India Ltd. 21. Radius Advertising Pvt. Ltd. 22. International Marketing & Advertising Corporation.

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23. Advertising & Sales Promotion Company.

24. Pratibha Advertising.

25. Thomas Associates.

26. Jaisons Advertising.

27. Everest Advertising Pvt. Ltd. 28. Ideal Advertising Agency.

29. Chaitra Advertising Pvt. Ltd. 30. Communications Consultants.

31. Creative Unit Pvt. Ltd. 32. National Advertising Services Pvt. Ltd. 33. Impressions Advertising & Marketing.

34. Madison Advertising.

35. F.D. Stewart Pvt. Ltd. 36. Inter Publicity Pvt. Ltd. 37. Concept Marketing & Advertising Pvt. Ltd. 38. Adverts Pvt. Ltd. 39. Dazzal Advertising.

40. Alpha Advertising Service.

41. 20th Century Publicity Pvt. Ltd. 42. Publicity Forum.

43. Advertising Research & Marketing Services.

44. R.K. Swamy Advertising Associates Ltd. 45. Marketing Research Department of Hindustan Lever Ltd. 46. Stusa Advertising Pvt. Ltd. 47. Heros' Publicity Service.

48. Norvicsun Advertising.

49. Rediffusion Advertising Pvt. Ltd. 50. Grant Advertising (India) Ltd.

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51. Ratan Batra Pvt. Ltd. 52. Avid Ltd. 53. Graphicsads.

54. Kadambari Advertising Pvt. Ltd. 55. Akshara Advertising.

56. PH Advertising.

57. Ultima Advertising & Marketing.

58. Frank Simoes Advertising Pvt. Ltd. 59. Overseas Advertising.

60. Contour Advertising Pvt. Ltd. 61. Admans Advertising.

62. Gayways Publicity Pvt. Ltd. 63. Contract Advertising & Promotions Ltd.

FACTORS FOR INDEX BUILDING Government Is constructing its urban and rural market indexes with the help of marketing research data. The Government constructs the urban market index for all the markets having population of more than 20,000 people. There are a number such markets with more than 80 per cent urban population. Thirty eight kinds of indicators have been identified and the Government is using 23 major factors so as to build these indexes. These factors are: 1. Number of households.

2. Number of literates.

3. Increase in population between 1961 and 1991.

4. Employment in cottage industries.

5. Employment in small and large industries.

6. Employment in construction.

7. Employment in trade and commerce.

8. Employment in transport, storage and communication.

9. Employment in other services.

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10. Number of domestic radio & TV sets.

11. Number of telephones.

12. Number of private cars.

13. Bank deposits.

14. Number of doctors.

15. Number of chemists and druggists.

16. Number of cinema seats.

17. Sales tax.

18. Entertainment tax.

19. Electricity: number of domestic connections.

20. Electricity: number of domestic units consumed.

21. Electricity: number of industrial connections.

22. Electricity: number of industrial units consumed.

Number of TV sets Data provided by these factors with regard to area density, population, sex ratio, employment categories (cultivators and agricultural labour, livestock, forestry, mining, quarrying, fishing, hunting, plantations, orchards and allied activities), number of banks, and number of cinemas.

INDICATORS FOR RURAL MARKET INDEX For designing Rural Market Indexes, the following economic indicators have been selected: 1. Literate males.

2. Literate females.

3. Cultivators.

4. Non-agricultural workers.

5. Households with operational holdings of 5 acres and over.

6. Gross cropped area.

7. Gross irrigated area.

8. Area under non-food (cash) crops.

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9. Normal rainfall and the degree of its assuredness.

10. Solid fertility.

11. Livestock.

By listing all these factors here, we want to show that the data is collected on these and various other factors (indicators) for designing indexes. For gathering these data many people are engaged. They get employment. Thus, this shows that not only in the private sector but also in the government sector marketing research is carried out.

This exhibits that the marketing research is not only growing in the industrial and commercial concerns but also growing rapidly in the governmental sectors into a big business activity.

KEY FACTORS INFLUENCING THE GROWTH OF MARKETING RESEARCH Marketing research is expected to grow more in future because the life cycles of various products are becoming shorter. This is because of increased product failure and intense competition. There is immense shortage of industrial inputs. Consumers are getting more aware about their rights. Decision makers are becoming more knowledgeable of statistics and computer usage. The computer capability and use is rapidly increasing in the business, and rural markets are attracting more attention of business world. We shall take up each of these key factors for detailed discussion in the foregoing text.

1. Shortening Product Life Cycles First, there is a scarcity of new product ideas, more product failures, changing tastes of people, and difficult procedure of introducing new products in the market. Once the product is introduced in the market despite cumbersome procedures, it does not survive for long. Because there are more and more competitors who mimic or imitate the new product and enter into the market. This leads to a decrease of sales and the product either has to be modified intensively for survival or it has to be abandoned. To succeed in the market, the manufactures have to gather data on the competitors' strategies and futures demand of the products is to be specifically forecasted. For doing so the researcher needs a lot of marketing research efforts and funds to finance projects.

2. Shortage of Industrial Inputs Besides the basic raw materials required for the manufacturing of different products, industries in India, in particular, are facing shortage of basic industrial inputs. These inputs include: coal, oil. Power, transport modes, labour (skilled and unskilled), capital, land, technology and management experts. These

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inputs are extremely in short supply. The companies have to think twice before going for expansion and diversification of their product lines. For executing their plans, the manufacturers have to collect very reliable data and analyse and interpret these carefully. For accomplishing this, they need to conduct marketing research which can provide them the required information for making decisions on their expansion and diversification plans.

3. Increased Awareness of Consumers Consumers are getting more and more informed about their rights to privacy, quality, keeping informed, and forming association or societies. This increased awareness of consumers is posting a threat to manufacturers. The latter has to collect more and more information on consumers' changing needs, wants, values and tastes. This information if collected in a reliable and valid manner can provide the marketers with the details which help them to a greater extent in designing their products, deciding package designs, colour of package, maintaining quality of products, formulating the pricing, distribution and promotion programmes to satisfy the consumer needs. It is said that the current customer is the "king." This statement holds true in the current circumstances where the customers' behaviour is chap Consumer keeps on dictating his terms to the marketers. To keep track of the consumer needs, wants and values; the manufacturer has to collect pertinent information and analyse and interpret that. This can be achieved through the services of marketing researchers.

4. Decision Makers' Increased Knowledge of Statistic' and Computers Decision makers want to keep themselves apprised of modern and sophisticated statistical techniques and use of computers. In this connection they are becoming more and more exact in handling information. They are using the expertise and tools of regression analysis, correlation analysis, canonical analysis, chi-square analysis. z-test, t-test, analysis of variance, discriminate analysis, factor analysis, cluster analysis, conjoint analysis, multi-dimensional scaling techniques, and stochastic techniques.

Besides these, there are myriads of other sophisticated statistical techniques which are used by the decision makers. The decision makers are continuously on a run to know more details of statistical techniques for applying them to their decisions. They need the help of computers to a larger extent in computation pertaining to these sophisticated techniques. Owing to increased sophistication and complexity of these techniques, all the decision makers in organisations are not well equipped with these techniques. So the role of marketing research learning and practising of these techniques. So the role marketing research gains tremendous significance in present

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5. Increased. Emphasis on Rural Markets Due to the intense competition prevalent in the urban markets, the manufacturers have started looking toward rural markets. Till today, the rural markets world over in general, and India in particular, maintained their unit appeal comparatively. The business organizations concentrated their efforts in the urban markets ignoring the rural ones. Even the most needed consumer products at an affordable price structure, like cigarettes, toilet soaps, packed tea leaves, es tried and sold in rural markets. Actually rural markets particularly in India, require "Janata brands of various products which are cheaper due to their lower manufacturing cost and owing to their advantages of economy of scale. This is also to lessen packaging and promotional costs and in order to develop strategies exclusively for rural markets, the manufacturers have to devote quite good amounts of resources on marketing research activities. The expenditures will, however, ideal stages of entering these markets. These expenditures will, however, go on decreasing with the passage of time. Thus, the money once spent on rural markets will account for the long term investment of the company. Obviously, the systematic marketing research effort with regard to the rural markets gains utmost significance for business organisations of today.

TRENDS IN MARKETING RESEARCH 1. More Realistic Objectives The goals of marketing research these days are becoming more definite and realistic.

Researchers are concentrating their efforts on very precise problems and trying to find solutions to these.

The researchers these days are no more trying to achieve solutions for very wide problems. In other words, they are not trying to know everything of every thing but everything of something. Researcher proceeds more specialized, claiming a case-by-case basis. Research has become more specialized, claming real expertise in only a small section of the overall research spectrum. This way marketing researchers are working towards a smaller, more definite, more modest, and more reality-oriented goals.

2. Sophisticated Analysis us. Simple Analysis There is a tendency of every researcher to apply very sophisticated techniques for analysis of data. While doing so he/she works out the analysis first and adjusts the objectives and hypotheses to the analysis already conducted. This is because everyone cannot use very sophisticated techniques like conjoint analysis, discriminate analysis, canonical analysis, multi-dimensional scaling techniques analysis. Only a fully qualified and experienced research can apply these techniques. But there is a dearth of such qualified and experienced researchers. The ordinary researcher is not well acquainted with the application of such sophisticated techniques. But there is a pressure on every researcher from the top

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management and the immediate boss for coming out with very meaningful analysis. Under this pressure he/she tries to apply these sophisticated techniques but in a haphazard manner. The result is that the attract looking findings are difficult for execution or implementation.

Moreover, these days computer canned programmes are facilitating the research problems with the advanced techniques of analysis. What the researcher: he/she collects a host of data and puts them into computers. He/she leaves everything on the computer to find solution for these data. Whatsoever solution computer provides that is put forth before the management. Because people are not much acquainted with the sophistication, they silently accept the solution. But how to implement the solution that poses problems. Actually, it is observed that a large number of research findings are not implemented. They are accepted owing to their impressive presentation and then keep on gathering dust on the stacks of the offices. What is the use of such reports if these are not used for the benefit of firms sponsoring them? Sometimes, the researchers present Utopian ideas as findings of their research projects by presenting them in a very attractive manner.

Keeping these problems in view, many firms and marketing researchers have started realising that there is not much fun in using highly advanced techniques for simple marketing research problems.

More simple statistical tools like percentages, averages, and standard deviation are being used these days for solving the research problems. Such findings are very easy to implement. More qualitative, and subjective details are collected and very simple interpretations with the help of simple techniques of analysis are worked out.

But the controversy between the sophisticated and simple analysis remains in the marketing research. Both the type of analyses have strong supporters behind them. The advocates of more advance research analyses seem to be very strong. While viewing the trend of marketing research in the light of these facts, we can say that there will be an increased inclination of researchers to use more sophisticated analytical techniques using computers despite limitations with regard to their findings implementation.

FUTURE DEVELOPMENTS AND PREDICTIONS Increased Use of Computers More and more researchers will be using computers for their marketing problems. There should be small individual computer terminals attached to sectional computers which in turn would be linked to company's bigger central computers. Individuals would be able to press a few buttons and communicate

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research findings to the concerned people. Consumers will be able to communicate with the producers through their TV sets by pressing a few buttons.

Use of Interactive Surveys Personal interviewing is becoming very costly affair these days. Moreover, there are lot of problems due to refusals to interviewing. not-at- homes, bias of interviewees and interviewers creeping into the research results. Besides there is an increasingly high menace a cheating by the interviewers in the personal interviews.

Refusals and not-at-homes problems in personal interviews an increasing tremendously because of increasing number of two-career families. At evenings also two-career family members (husbands and wives) are not able to spare time for interviews because of their heightened domestic engagements. So personal interviewing, if adopted for surveying, would not yield the expected results.

Telephone interviewing, due to increased number and efficiency of telephone systems, would increase in use for collecting data. The telephones' use will be very cheap in the near future for conducting even long interviews of the consumers. It would be comparatively easier to hold respondents for a longer period o lime on telephones for detailed interviews because of its not interfering much with the domestic privacy of the respondents.

Mail surveys, on the other hand, would be creating more the more problems to researchers due to prolonged waiting period for getting the response through these. Moreover, coastwise also mail surveys would be costlier because of increasing charges. Every year, we see an increase in postal use of mail survey for collecting research data would decrease tremendously in the near future.

Interactive interviewing seems to hold the promise for future collection of data from the consumers owing to tremendous growth potential. Interactive interviewing is a modern techniques usable for eliciting information from the respond each would be provided to the consumers, which can be attached to the TV sets by them. By pressing the keys on the board the consumers would be able to get a particular programmes. Live action catalogues would be possible. The viewer could request certain items from such a catalogue as to be displayed on the TV screen and could even order the merchandise sky shopping. Surveyors she likewise relish the possibilities of instantaneous interviews. The manufacturers could get the necessary information from the consumers on request. This would be very cheap with the passage of time to get information through interactive interviewing.

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Many experts predict that the use of such systems would be as common in homes in the near future as the TV sets these days.

SELF – EVALUATION QUESTIONS :

4.

________ gives general introduction of the project.

5.

_____________ deals with the research design to be used..

6. ______________ is used to analyze and interpret the collected data..

ANSWER : 4. Preface.

5. Methodology.

6. Statistical test.

Physiographic Research Physiographic research is another area which is going to be aided by the new developments in technology. Several new devices have come up. One such device is the Voice Pitch Analyser, or Truth Detector. This instrument is also termed as Physiological stress Evaluator. This instrument works like the conventional lie detector, in that it measures the amount of stress a when he/she makes a statement.

Unlike the traditional lie detector which is to be strapped with the respondent, the Voice pitch analyser can give a "truth reading" from a tape playback, over a telephone, from a TV set, and so forth.

Developments in electronic micro-circuitry confirm that the cost of product Analyser will not be more than a transistor radio. This device may herald a new era in marketing research in particular, and social science research, in general.

There will be a lot of development in the coming years in connection with the measurement of various types of messages the human body gives off through assorted electro-magnetic fields. These messages although remain invisible to the naked eye yet, can be detected with certain instruments like Brain Wav

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measurements If developed, such instruments would prove to be of great help to the marketing researchers.

Advances in Computer Use Analysis with the help of computers have become so dramatically cheaper that researchers and businessmen would be greatly allured to use computers for common calculations like tax charges, inventory control, payroll, etc. Increased usage of desk computers (with tubes and personal computers) will aid researchers to directly transmit the data from them to the decision makers in the companies.

Computers of companies would be linked to information libraries of outside research firms which will make the required data readily available to the decision makers. Increased amount of secondary data will be made readily accessible through modern computer systems. This sort of data will prove to be very helpful to the market researchers.

Legal and Regulatory Constraints There will be increased complexities of legal and regulator implications pertaining to marketing research. Each and every firm involved in marketing research will have to be embroiled in the legal and regulatory constraints. More and more legislations will be proclaimed pertaining to the expenditure limits for marketing research. Researchers have to devote more time in solving the legal problem facing the firm concerning marketing research.

Legislations relating to citizen's privacy may be proclaimed by Government on the repeated demands of the public. This may in the door-to-door selling, door-to-door fund raising, and door–to-door surveying. Certain other legislations regarding regularization of telephone and mail surveys may also come up in the near future. These and a host of other legislations would make the survey research a more difficult affair.

In nutshell, we can conclude this chapter saying that marketing research will become a very important activity of organizations. MR will be aided by the sophisticated gadgets to make it faster and effective. The computers will play a major role in analysing the large quantity of data using very advance statistical id research techniques. Legal and regulatory constraints will come further complex and have greater implications for the researchers.

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MARKETING RESEARCH AGENCIES Definition MR agency is an organization which undertakes marketing research assignments from business organizations which are not able to establish their separate MR departments or cannot devote time, money and efforts on research activities.

Development In India, several MR agencies have been working particularly industrialised cities like Mumbai, Delhi, Calcutta, Chennai, Hyderabad, Bangalore, etc. Many of these agencies have established themselves as general consultancy, technical consultancy, management consultancy and advertising consultancy organizations. When these were established marketing problems were not that complex and pertinent as they are now. As competition is increasing different areas, marketing problems are being faced by man Many business organisations are interested in solving their marketing problems pertaining to forecasting, market potential, market segmentation, product positioning, new product development, pricing, distribution, dealership, sales advertising, etc. With the increase of marketing problems in companies, the latter have started approaching above-mentioned MR agencies which are basically set up for different purposes.

MR agencies in India are taking up marketing research assignments in particular and other agencies, in general. Though in recent years, several MR agencies have emerged but they still are not well established and reputed as yet. There is a need that some independent MR agencies are established so Dial marketing problems can be objectively and systematically solved. Other general purpose agencies are not able to do justice with MR assignments.

Functions The scope and functions of MR agencies are same as those of any MR department established by any business organization. An MR agency is supposed to take up any assignment concerning marketing problems of any business organisation. MR agencies are conducting research on a variety of marketing problems, viz., business economics and corporate research, and corporate responsibility research. In India, some MR agencies are limiting their functional to only a few marketing problems, viz., product advertising, and sales and market analysis. But, in general, the scope of MR agencies is very broad as they can tackle any problem pertaining to marketing.

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Organisation structure followed by independent MR agencies is of the same type as mentioned in independent MR department of a business organisation. Generally, a MR agency has a director under whose supervision several managers or consultants work. These managers may be given duties and responsibilities on their of the foil owing basis (i) function, (ii) divided function, (iii) product/industry, and (iv) market/regions. In functional orgarisation, problems of MR may be assigned to managers and each c maybe incharge of an independent job, e.g., marketer analysis. In divided function organisations, managers may independently handle some part of all problems, e.g., research and data collection. In product industrywise organisation, managers may be given independent charge of all problems of a particular product/industry, e.g., chemicals and pharmaceuticals, engineering, etc. In market/region wise organisation, each manager may marketing problems of his market/region. Only one organ chart is shown in Figure 1.2 as the organisation structure is same as shown in MR organisation structure in this chapter.

Further each manager/consultant may have executives to look after sub-functions falling under his assignment or area. Assistant executives or investigators may be working under each executive to assist him. All assistant executives report to the executive who in turn rep managers and manager reports to MR director.

Merits 1. MR agencies are of immense help to origanisations which cannot afford to employ their own MR staff. This saves time, cost and effort of client firms.

2. MR agencies conduct executive development programmes to train executives in various techniques of MR. This helps the organisations to brighten the skills and techniques of their MR staff.

3. MR agencies also perform consultancy work for different clients in various management and marketing areas. This is of great help because the same agency can offer consultancy and perform MR assignments. The client does not have to search for different agencies for varied marketing problems.

4. Some MR agencies have basically originated from advertising agencies, hence they take up advertising and publicity assignments too.

5. MR agencies have expertise and experience in research, they can work on problems more effectively and provide latest information to the clients.

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Demerits 1. MR agencies charge very high fee for performing MR jobs which is beyond the reach of small and medium entrepreneurs.

2. When MR agencies perform both MR and assignments, MR part gets neglected. Client suffer because of neglect of their MR assignments by agencies.

3. Where MR agency originated from advertising agency, the basic task remains advertising and publicity and advertising research. Even when such agencies are performing MR function there is every likelihood that publicity may be given to it because of the inclination of agency to publicity which in turn may Jeopardise the MR

investigation from the client's point of view.

4. When some agencies grow in size and earn good reputation in the market, they refuse to take small assignments from the smaller firms.

5. Some agencies have established themselves as technical agencies for conducting project feasibility studies. When they start taking MR assignments, they may not be able to do full justice with assignments because of lack of any formal 'education in MR. Hence, clients have to suffer.

6. Certain MR agencies may not work actually on some problems because they may depend on the old data, which is already available with them. The reports prepared on the basis of these obsolete data may prove to be the clients despite heavy expenditures incurred in getting the research conducted. This may be attributed to unethical nature of some MR agencies.

At the international level, several MR agencies are doing an excellent job in handling marketing problems of their clientele. Most famous MR agency operating in the U.S.A. is A.C. Nelson and Co. which is providing excellent service to its clientele and coming up with the new techniques of MR. Similarly, ORG and MARG are doing good work in India.

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REVIEW QUESTIONS 1. Define marketing research. Highlight the nature the scope of marketing research. What are its .limitations?

2. What do you understand by the term marketing information systems? How does MK1S function?

How would you distinguish it from MR? Describe its benefits.

3. Prepare an organisation chart of a company involved in the marketing of consumer goods. Where the MR section must be located in it? Explain and justify why do you allocate this spot for MR in the organisation structure.

4. How would relate MR with other disciplines of social sciences? Describe these with examples.

5. Highlight the importance and role of MR in today’s marketing management operations in India?

6. What is an MR agency? How is it different from an advertising agency? Give objectives, functions, merits and demerits of MR agencies. What organizations structure an MR agency should adopt in Indian 7. "Poor communication hinders presentation of research findings�, Elaborate this statement.

8. What reporting format must be adopted for written presentation? Do you suggest some modification in this format in this format in view of a research problem which you are pursuing?

9. Describe in detail the "dos" and "don'ts" with regard to a researcher's presentation in written and oral forms.

10. What is a research proposal? Being a marketing research student, prepare a proposal for a viable project. You may attempt any hypothetical problem.

11. Write short notes on the following : a. Verbal presentation. b. Reporting format for written presentation. c.

Use of graphics in written presentation.

d. Importance of research presentation. e. Choice of the final writer for presentation.

12. Highlight the key factors which are to be kept in mind while making a written research presentation.

13. How would you prepare a research proposal for studying marketing problems of Ludhiana hosiery units? Whom would you approach for its sponsorship.

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14. What future trends are visible from the marketing research activities of the recent years? Critically examine these.

15. “Marketing research is being recognized as a big business these days”. Do you agree? Explain this statement with reasons.

16. Highlight various factors which are leading marketing research to a stage of increased sophistication. What are their merits and limitations?

17. “Increased sophistication in marketing research is a mere wastage of time and money”. Do you agree? Explain with suitable examples.

18. Discuss various future trends emerging in the field of marketing research.

19. What will be the implications of these trends for the marketing researchers?

20. Will his/her job become more complicated as a result of these trends?

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