Marketing Research and Its Techniques of Conducting - Assignment Example

Question Marketing research refers to the systematic procedure for the collection and analysis of data regarding some specific market product. It enables the manufacturers, industries and companies to have a comprehensive and analytical assessment in respect of the views, preferences, requirements as well as prospects and perils of the consumers, retailers and stakeholders involved in sales and purchase of their product. “Marketing research”, according to Answer.com, “is a systematic collection and analysis of data relating to sale and distribution of financial products and services.” (www.Answer.com). The data gathered and interpreted during marketing research significantly supports the organizations draw out future plans according to the changing trends and scenario of the market. It is considerably helpful in enhancing the organizations’ volume of production and sales. “Marketing research” Zaidi & Javed opine, “concentrates on data collection related to market product while interacting with the consumers, gathering information from them and interpreting results about various aspects of a market product.” (Zaidi and Javed, 2002:7). A marketing research is usually conducted either to prove the validity of the previous study, already conducted either by some other researcher or the same researcher in some other area or time period, or to gather latest information related to discover the various aspects of a market commodity. “All employees must practice the marketing concept in their everyday corporate behavior for a firm to be able to say that it is applying the marketing concept for consumer orientation, goal orientation, systems orientation and market exchange process.” (Dr. Langford, B. E.). The rapid transformations in business environment have made significant impacts on marketing research. Business environment is defined as the cultural and structural characteristics of an organization, an industry, a company or a market. In other words, the term refers to the managerial activities, departmental interactions, individual and group tasks, strategy formulation, implementation and analysis, and interaction between different branches and sections etc. The upper management and board of executives determine, review and regulate the cultural and strategic environment of an organization. The business culture is based on the management techniques devised for this purpose. “The business environment of an organization includes rituals and routines, control systems, organizational structure, power structure, symbols and stories.” (Johnson & Scholes, 1993: 60). Decision-making is a very significant matter in business strategy. The decisions taken by the leadership make up the business environment within an organizational structure. Leadership plays dominant role in respect of making and applying strategy of an organization. It is the leader who is most important figure in success or failure of a project, strategy as well as organization itself. The changes in the international markets at large instigate alterations in consumer behavior and business environment. The induction of latest technology, introduction of novel strategies and socioeconomic and political changes, globalization, multiculturalism and the state of perfect competition in market have brought significant transformations in contemporary business environment. All these factors have both positive and negative impacts on marketing research. Globalization Globalization has brought tremendous changes in the business environment all over the world. It has also offered new dimensions in the field of marketing research. “Globalization is most typically characterized as involving increasing borderless and the increasing compression of social life.” (Chase-Dunn, Kawano, and Brewer 1999). Globalization has introduced an open market environment, where there are more opportunities of economic activities and marketing. There is an urgent need of exploring various markets and make researches on them. Countless companies have penetrated in the international market, and the requirements of the consumers from different schools of thought and belonging to different socioeconomic classes can be sorted out with the help of research methodology, so that both consumers and companies can obtain the best share in the global market of maximum choice and freedom. Velocity of commercial activities in the contemporary business environment has decreased the divergence between the marketing and research marketing. In this changing scenario, there is an urgent need of joint adventure by marketing personnel and researchers so that the maximum information regarding commercial activities could be found in this age of competition and globalization. The researchers have maintained desks along with the marketing managers and both the departments are in work with the support of each other in order to examine and investigate the characteristics of modern commercial developments. IMPACT: The modifications in the business environment have applied significant impacts on marketing research at global level. The globalization has given birth to the state of perfect competition among the companies, which has accelerated the opportunities in the field of marketing research to a great extent all over the globe. It has left indelible impacts on marketing research too. The researchers require more struggle to bring uniqueness in their style regarding prompting the questions. Now, the market researchers focus on only basic advantages and disadvantages of a specific product during research, and try to improve the advantages rather tracing all the minute reasons for popularity or infamy of a product. Comprehensive and in-depth questionnaire, interview-schedule and other tools and techniques have been replaced by easy, precise and to the point questions and the researchers find the respondents in recreational places so that all the process can be completed in a light mood without mentioning the research process. Leisure clubs are selected during the research process so that the respondents can be accessed easily. Further, marketing research has been made in such an interesting way that no one can take it as burden on his personal life. The questions are developed so skillfully that the respondents consider it the part of amusement and enjoyment. Further, people have become more aware regarding the consumption of a specific product, (Malhotra & Peterson, 2001: 214) it has become flexible for marketing personnel to analyze the latest trends of market. Technological Technological advancements and industrialization have emitted the distances in a surprising way. There are bright opportunities of conducting research process and gathering data from the respondents through internet. A researcher having command over research methodology as well as browsing can collect information from websites and chat rooms provided he skillfully exercises his capabilities and focuses the concentration of the respondents towards the field of his interest. Research marketing organizations like Gallup International, A. C. Nielson, Oasis International and others have devised latest technology methods both in qualitative and quantitative research process. The world has been transformed in to a global village. Many developed countries have opened immigration schemes to bring the high brains from all corners of the world. Further, the traveling has become very easy and mobilization processes are at their climax today. It has given birth to homogeneous society where countless cultures and civilizations emerge at a single point, which has not only created unbound commercial activities, but also trade and commerce observes notable boost. In this context, the consumers’ tastes and requirement have also accelerated. The researchers’ responsibilities regarding marketing see appreciable change in its wake. The people belonging to one culture long for product of their own culture as well as prevailing in some other one, which is quite novel for them. Moreover, growing economic needs have also altered the research trends at market level. It is therefore an unlimited universe exists for the marketing researchers in the technological age of today. IMPACT: Technological advancement has altered the procedure of research marketing. In the past, the companies used to send the researchers in the market to assess and estimate the population from where the data was required. With the change in business environment and technological advancement, marketing research has also taken drastic changes. Now, the selection of population and sample has become austere and researchers can reach the individuals and groups of their own choice through internet and web browsing, where relevant data is always present to support the research process. The latest technology has made very easy for the researchers to reach the source in a jiffy. "Two principal reasons are cited", according to Friedman (1999), "for the continuous growth of marketing research. First the diffusion of computers and second the plenty of telecommunication facilities. Now researcher can enquire from the respondents over phone without wasting lots of time and energy. Social environment Though there are so many benefits of socioeconomic and cultural changes for the research marketers, yet modern business environment has introduced some difficulties too in their wake. The social life is very busy now all over the globe. The people are too much engaged at their work that they seldom bother to give proper response to the researchers. Further, both men and women are at work from dawn to dusk, and their availability at homes and residence is rare. The corporate culture does not allow an employee or even the employers to indulge into long research process to support the researcher. It is therefore the data collection has become a hard nut to crack. Moreover, the people feel uneasy in disclosing their liking and disliking towards a specific product. Majority of people fights shy of revealing its life-style, leisure time activities and sex orientation to strangers and researchers. (Khalid, 2001: 31). It is therefore, the findings of the long-term research work look contrary to the real facts and figures. The people on the internet can not be identified and most of the findings of the researches are based on ideas and imagination. IMPACT: During the last century of past millennium, Malhotra & Peterson argue, the marketing researcher was a well-defined individual with high qualification and particular field of performance. But the change in business environment has reduced the distances between the marketing personnel and researchers. Now, the researchers are usually the part of decision-making team and support the management and administration in their campaign of taking any decision as well as making a strategy regarding the product. All that is the outcome of changes in business environment. It is therefore, Honda and Coca Cola have emerged the rooms of the executives of different departments into one common hall, so that more and more communications between all the executives may prove beneficial for all especially the research personnel within a business environment. Case Study Business strategy is an inevitable part of every corporate firm’s management plan on which all its foundation and functioning stand. All the organizations either large or small establish decision-making departments to devise methods and apply techniques for the growth and success of their product and merchandise according to the consumer behavior. Such sets of devises are called the organization’s strategic plans that support in enhancing its volume and capacity. Thus, there always exists the need for a comprehensive and transparent methodology of formulating a decision-making strategy. One other significant impact of changing business environment on marketing research that has brought revolution in the field is conducting of marketing research before launching the product. This trend has been introduced by the multinational companies including Honda, Coca Cola, Nestle and telecommunication industries. In order to remain at the leadership position in international settings, hard and continuous efforts are required. The latest information about the market environment as well as the rivals companies preparing the same products and offering the same services is an essential matter. That is why the companies hire the services of researchers to combat the rival threats within a commercial set up. The same was done by a Middle East mobile phone company while launching its services in south Asian countries under the brand name “Warid Telecom.” Before introducing its product, the Warid Telecom conducted research surveys enquiring about the drawbacks as well as plus points of the other mobile companies already working in the market. The questionnaire was used as tool for data collection in the quantitative research, and the lower middle class was focused as the population of research process. On the other hand, the marketing research teams used interview-schedules during their campaign of concentrating on the upper middle classes. Modern methods of Focus group discussion were exercised in respect of approaching the upper stratum of society. They used electronic media, CD players and internet websites to brief the focused groups. As soon as both the quantitative and qualitative research works were completed, the company hired the research marketing company applied statistical tools and methodology to interpret the findings. On the basis of the recommendations suggested by the marketing research company, the Warid Telecom launched an introductory campaign announcing mobile service on economical rates and prize schemes in comparison with the previously existing mobile companies. It captured the attention of the users at once, and the company got a remarkable boost in the Asian countries. Conclusion Therefore, it is fact beyond doubt that modern technological advancements and industrialization have widened the canvas of both thinking and performing. The socioeconomic and cultural activities have been fastened and diversity can be seen everywhere in society. The scope of research marketing has met positive consequences and the subject finds a secure and elaborated volume. Somehow, every new discovery causes some difficulties and problems too. The same is the case with the research marketing which undergoes few hurdles and obstacles too along with so many perspectives and opportunities. Question 2 There are two main techniques of conducting the research process i.e. survey data collection research and non-survey data collection research. Being one of the methods of qualitative research, focus group discussion is frequently applied in marketing research. The use of focus groups is a well established and widely used qualitative tool in commercial marketing research. (Blackburn & Stokes, 2000). It is also used in social sciences including sociological as well as psychological research methodology. In focus group discussion, approximately eight to ten individuals from similar environment having common interest in a particular topic under study are focused for dialogue and discussion during the research work. “There is no ideal size for a focus group, (Fern, 1982) states, “but it is generally accepted to 8 to 12 in an effective number.” Focus group is usually formulated on the basis of same age-group, gender, locality, profession, department or business activity. “A focus group interview is a structured group process used to obtain detailed information about a particular topic. It is particularly useful for exploring attitudes and feelings and to draw out precise issues that may be unknown to the researcher.” (Iowa State University Extension, 2001) For example, while conducting a research to explore the validity and popularity of an oil company, the researcher may focus on the farmers and landlords, who consume oils of different brands and companies for their tractors. “Though the focus groups”, according to Denzin & Lincoln(1998), “are most commonly associated with market research and product testing, yet they developed out of research commissioned in the 1930s by the United States War Department to investigate the loyalty and morale of American soldiers leading up to World War II.” The main objective before focus group discussion is to explore the broad diversity of viewpoints and perspectives on the topic from the units of analysis maintaining common interest and undergoing same problems. “Focus groups”, Nielsen (1997) views, “often bring out users spontaneous reactions and ideas and let you observe some group dynamics and organizational issues.” The researcher can gather enough information by stimulating the group to reveal their activities, in few hours, which may take many weeks if other methodology i.e. participant observation or interview-schedule are applied. “One of the primary benefits attributed to the focus groups, (over other qualitative methods, such as personal interviews)”, Newby, Soutar & Watson view, “is the additional insight that can be gained from the interaction of a cohort group (e.g. small business owners).” Tape recorders and handy cameras are the essential parts of the focus group discussion to record and replay the whole activity for revising the points as well as preparing the report for the interpretation of results. There are many advantages and disadvantages of the focus group discussion. One of the most significant advantages of focus group discussion is this that a comprehensive debate on all aspects of the topic under study especially from the end consumers supports in analyzing the whole of the product and problems related to it including easy access, availability in market, quality, measurement and price etc, can be sorted out. The problems and difficulties as well as dissatisfaction from the consumer side can be explored and amended on the basis of the data gathered for this purpose. “The main advantage of the focus group approach”, Newby, Soutar & Watson opine, “is that a good facilitator can provoke a free-flowing discussion.” As a result, the participants can elaborate the subject in a more refined and comprehensive way that is far superior to questionnaire and interview-schedule techniques. The researchers are of the view that focus group discussion contains lots of potential disadvantages. One of the main disadvantages of the Focus group discussion is that it is a controlled type of marketing research, where the group under study is recruited for research purpose. As it is conscious of the research being conducted, it is therefore the process cannot be stated as free from biasness. “Focus groups”, according to Nielsen, “can produce inaccurate data because users may think they want one thing when they need another.” (Nielsen, 1997). Further, there exists the probability of exaggeration while discussing positive or negative aspects of the merchandise under discussion. “The groups’ views”, according to Blackburn & Stokes (2000: 51), “might be unduly influenced by pressures to conform, as individuals could be hesitant to express views different to those normally expected.” Moreover, the respondents may insert incorrect information due to some personal prejudice regarding a product keeping in mind the views of the moderator. It is therefore a highly skilled and experienced moderator is required to conduct focus group discussion. Similarly, as the group has been selected mostly out of quota (non-probability) sampling, it is hardly the representative of the actual units of analysis i.e. population. The information collected from the controlled group is seldom reliable and accurate. Other disadvantage of focus group discussion includes that almost all the questions are open-ended and in ordinal form, that does not numeric difference between the variables within data points. Further, while listening to the tape recorder after conduction of the discussion, it becomes impossible to identify which respondents had reply the question and who was the person to add some specific comments. It is therefore new ways have been inducted in the focus group discussion process. “In preparing transcripts from audiotapes”, Newby argues, “it is not always possible to hear all the comments, particularly if some group members are quietly spoken or if a number of participants are making points simultaneously.” There have been introduced some recent trends that have supported in overcoming the disadvantages of focus group discussion. Two most prominent trends include Group Support System (GSS) and Internet. Now, the researches are conducted with the help of computers, internet, e-mails, forums and handy-cameras and other electronic media are incepted while making a presentation as well as applying focus group discussion. Computer has taken the place of notepads and pencils while making the presentation during the research process. Group support system usually consist about 10 people, and all of them uses computer to type their views and replies. All these computers are interlinked with a main “Chauffer”. “The chauffer drives the computer, according to Newby (2005), “technology that is used to capture, clarify and print copies of responses from group members.” Recently Advertising Age carried a front-page article talking about the trend toward using the Internet to conduct on line focus groups ("Safe at any speed?" AA, Jan 24). This was one of many articles that have appeared in marketing and marketing research publications in recent months as more organizations try to utilize the Internet to save money and increase the speed of getting qualitative research results. While there may be some benefits to conducting qualitative research online, it is important for marketers to understand what they are losing by using the cyber medium to conduct their study, and specifically why this type of research is not an effective replacement for well conducted focus groups. REFERENCES Zaidi, Mujtaba Haider & Javed, Muhammad Akram. (2002). Dimensions of Qualitative Marketing Research. Moosa Publications, Urdu Bazaar, Gujranwala. Johnson, Gerry & Scholes, Kevan. (1993) Exploring Corporate Strategy. Text and Cases, 3rd ed. Prentice Hall New York. Khalid, Shamaila. (2001) Psychological Causes of Same Sex Preferences. An unpublished Thesis submitted to the Department of Psychology, University of the Punjab. Logan, Newman. (1976) Strategy, Policy and Central Management, 7th Edition. South Western Publishing Company, Ohio. Mair, Andrew. (1996) Reconciling Managerial Dichotomies at Honda Motors,.Submitted to Birkbeck College, University of London. Pp 663-679. Blackburn, R. & Stokes, D. (2000) Breaking Down the Barriers: Using Focus Groups to Research Small and Medium-sized Enterprises. International Small Business Journal 19(1). 44-67. Denzin, N. and Lincoln, Y. (1998 ed.) Collecting and Interpreting Qualitative Materials. Sage: California. Newby, Rick. Soutar, Geoff. & Watson, John. (2005) Comparing Traditional Focus Groups with a Group Support Systems (GSS). The University of West Australia. Pp 421-432. Kobe, Gerry. (2004) How Focus Groups Failed Aztek, PT Cruiser. (General Motors Corp., Chrysler Corp. focus groups forecast product success) (Brief Article) Gabel, Terrance G. & Boller, Gregory W. Toward A Cross-Cultural, Qualitative, Marketing & Consumption-Based Understanding of the Globalization of Food & Farming. California State University, Northridge. Wit, Bob De & Meyer, Ron. (2003) Strategy Process, Content, Context, 3rd ed. Chase-Dunn, Christopher (1999), "Globalization: A World-Systems Perspective," Journal of World-Systems Research, 5, 176-198, from http://csf.colorado.edu/wsystems/jwsr.html Nielsen, Jacob, (1997) “The Use and Misuse of Focus Groups”. Retrieved March 31, 2007, from http://www.useit.com/papers/focusgroups.html “Focus Group Discussion”, n.d. Retrieved March 26, 2007, from http://www.unu.edu/unupress/food2/UIN11E/uin11e0e.htm “Focus Group Approach, To Needs Assessment”, March 1, 2001. Retrived March 26, 2007, from Iowa State University Extension, http://www.extension.iastate.edu/communities/tools/assess/focus.html Langford, Dr. Barry E. “Research Methods”, n.d. Retrieved April 6, 2007, from http://www.fgcu.edu/cob/mkt/langford/mrnote1.htm Mark S. Walker, Dec 1, 2006(Vol. 26, No.21) “Marketing Research Tips for Supplier”. Retrieved April 15, 2007, from http://www.genengnews.com/articles/chitem.aspx?aid=1935&chid=0 Greenbaum, Thomas L. (Feb 14, 200) “Focus Groups vs. Online Clients:  Weigh benefits, liabilities of research types before buying”. Retrieve April 15, 2007, from http://www.groupsplus.com/pages/adage0214.htm Read More