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IN THIS UNIT YOU WILL STUDY ABOUT

•MARKETING RESEARCH- importance, process

and scope, marketing information systems-

meaning, importance and scope.

•Consumer Behaviour- Concepts, importance &

Factors influencing consumer behaviour

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• —The American Marketing Association

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• —Philip Kotler

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NATURE OF MARKETING RESEARCH

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IMPORTANCE OF MARKETING RESEARCH TO BUSINESS AND INDUSTRY

• Decision making tool

• Management planning

• Problem solving

• Control technique

• Large-scale production

• Complex market

• Pattern of consumption

• Suitable marketing operation

• Pricing

• Marketing strategy

• Distribution

• Sales promotion6

IMPORTANCE OF MARKETING RESEARCH TO ECONOMY

Avoid crisisReduce

recession

National

IncomeDistributionEmploymentProduction

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SCOPE OF MARKETING RESEARCH

• Market and customer research

• Promotion research

• Distribution channel research

• Motivation research

• Product research

• Pricing research

• Sales research

• Advertising research

• Policy research

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FUNCTIONS OF MARKETING RESEARCH

Evaluating

Explaining

Predicting

Assisting

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PROCESS OF MARKETING RESEARCH

Identifying and

defining research

Extensive literature

survey

Formulation of

hypothesis

Preparing the

research design

Determining

sample designCollecting the data

Execution of the

projectAnalysis of data

Testing of

hypothesis

Generalization and

interpretation

Preparation of the

report or the thesis

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TECHNIQUES OF MARKETING RESEARCH

Survey method

Experimentation

Distributor or store audits

Panels/Consumer panels

Content Analysis

Observation method

Warranty cards

Pantry audits

Use of mechanical devises

Focus group

Field trials11

FACTORS INFLUENCING MARKETING RESEARCH DECISIONS

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LIMITATIONS OF MARKETING RESEARCH

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• —Cundiff, still and Govoni

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CHARACTERISTICS OF MIS

• MIS is a consciously developed master plan for information flow. It is an ongoing

process and operates continuously.

• MIS provides integration and co-ordination among marketing planners, salesforce and

external environment

• MIS is future oriented. It anticipates and prevents problems as well as solves marketing

problems.

• MIS provides scientific base to marketing with the help of operations research

techniques

• Management gets a steady flow of information on a regular basis, the right

information. For the right people, at the right time.

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IMPORTANCE OF MIS

Help

understand

customer's

needs and

wants

Help Assessing

Needs of Customers

Capture Interaction

between firms and

customers

Attract potential

customers

Helps assessing

customer’s buying

behavior

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SCOPE OF MIS

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COMPONENT OF MIS

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INTERNAL MARKETING INFORMATION

• The most basic information system used by marketing managers is the internal records

system.

• They include detailed reports on orders, sales, prices, inventory levels, receivables,

payables and so on .

• By analysing this information, marketing managers can spot important opportunities

and problems.

• All enterprises which have been in operation for any period of time have a wealth of

information. However this information often remains underutilised because it is

compartmentalised, either in the form of an individual entrepreneur or in the

functional departments of larger businesses.

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MARKETING INTELLIGENCE SYSTEM

• Marketing intelligence is the systematic collection and analysis of publicly available

information about competitors and developments in the marketing environment.

• A MIS is a set of procedures and sources used by managers to obtain their everyday

information about relevant developments n the marketing environment.

• The scanning of the economic and business environment can be undertaken ina

variety of ways, including:

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Unfocussed

scanning

Semi-focused

scanning

Informal

searchFormal search

MARKETING RESEARCH

• Marketing research is the third component of MIS.

• Marketing research is the systematic design, collection,analysis and reporting of data and findings relevant to aspecific marketing situation facing the company.

• Marketing research is only a part of MIS, while MIS is anongoing system

• Thus, MIS is a wider concept than marketing research.

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ANALYSIS AND PROCESSING OF INFORMATION

• Within the MIS there has to be the means of interpreting information in order to givedirection to decision. These models may be computerised or may not. Typical tools are:

• Time series sales models

• Brand switching models

• Linear programming

• Elasticity models

• Regression and correlation models

• Discounted cashflow

• These are similar mathematical, statistical, econometric and financial models are theanalytical sub-system of the MIS. A relatively modest investment in a desktop computer isenough to allow an enterprise to automate the analysis of its data.

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LIMITATIONS OF MIS

Not

Preferred

Depends on

database

Requires

new set of

skills

Installing the

software is

expensive

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• —Belch and Belch

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CONSUMER BEHAVIOUR

• It is study of when, why, how and where people do or do not buy a product.

• It blends elements from psychology, sociology, social anthropology, andeconomics.

• It attempts to understand the buyer decision making process, both individuallyand in groups.

• The term consumer buying behaviour, end user behaviour and buyerbehaviour all stands for the same.

• Consumer behaviour may be defined as the decision process and physicalactivity individuals engage in when evaluating, acquiring, using, or disposing ofgoods and services.

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NATURE OF CONSUMER BEHAVIOUR

• Systematic process

• Different for different customers

• Varies across regions

• Reflect status

• Improves standard of living

• Information search

• Influenced by various factors

• Different for different products

• Vital for marketers

• Result in spread-effect

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IMPORTANCE OF CONSUMER BEHAVIOUR

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FACTORS INFLUENCING CONSUMER BEHAVIOUR

Psychological

factors

Personal

factorsSocial factors

Cultural

factors

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CULTURAL FACTORS

Culture

Sub culture

Social class

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SOCIAL FACTORS

Reference groups

Family

Roles and status

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PERSONAL FACTORS

Personality

and self

concept

Life styleOccupation

Age and

life cycle

stage

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PSYCHOLOGICAL FACTORS

Beliefs &

AttitudeLearning PerceptionMotivation

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BUYING DECISION PROCESS

Problem

recognition

Pre-Purchase

information

search

Evaluation of

Alternatives

Purchase

decision

Post purchase

behavior

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BUYING HABITS OF CONSUMERS: LEVELS OF CONSUMER DECISION-MAKING

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