BBS second year Fundamentals of Marketing

Fundamentals of Marketing TU BBS Second Year

The subject notes to Fundamentals of Marketing TU BBS 2^nd year. It also covers the possible and important question for the exam. I think this really gonna help you. Some content may be similar to the book. After reading this I think you need not to read the book and other solution because I make this with the help of book and solution to find the answer effective and own.

 

CHAPTER-1

Introduction.

 

In general sense, marketing means to sell product. But selling is only the part of marketing. This is the age of marketing. Marketing activities are the part of our daily life. All types of organization needs marketing. Organizational success depends upon the marketing. Marketing is the business activity which is directed at satisfying human needs. Marketing tries to identify human needs and produce product to satisfy them. Marketing matches products with consumer needs. Marketing means not only to buy and sell but it is moreover attracting costumer satisfying their needs for retaining them. Marketing always aims to develop long term relationship with the costumer.

According to William Staton: Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying product to target market to achieve organizational objectives.

According to Kotler and Armstrong : Marketing is the process by which individual and group obtain what they need and want by creating and exchanging products and values with others.

Marketing thus is the system which follows a systematic process. It consists of set of activities like product development, modifying existing products, branding , packaging, labeling , quality control, setting pricing, objectives, distribution and channel management, promotional activities. Consumer's needs identification and satisfaction is the main theme of marketing and they are aimed to achieve organization objectives in a dynamic environment. Thus marketing process encompasses all activities aimed at identifying and satisfying costumer needs through exchange relationship to achieve organizational objectives in dynamic environment.

 

Importance of Marketing

Marketing has become the part of our everyday life. Marketing plays significant role for the organization,consumer and society. Its importance is increasing day by day. The following charts show the importance ......
Of marketing to consumer, society and organization

 

To Consumer                                     To Organization                                                To Society

Standrad of living                            Demand Management                                  Social well being

Value Addition                 Product distribution                                       Employment generate

Information                                       Coordinated usage of resources               Meet community need

Product Assortment                       Objectives achievement                              Economic mgmt

Satisfaction

 

Importance to Consumer: Marketing is importance to consumer in following ways

 

I) Standard of  living: Marketing delivers standard of living to consumer. It offers product that satisfy their needs. Safe and hygiene product of high quality improve the quality of live as well as living standard.

 

Ii) Value Addition: By delivery of products at right quantity at right time at right price , marketing adds value of products to consumer.

 

Iii) Information: Marketing provides information to consumer about product, price, place and promotion. This promotes efficient buying for consumer.

 

Iv) Product Assortment: Marketing provides all product at the convenient place. So they can exercise freedom of choice.

V) Satisfaction: Better product performance provides satisfaction. Marketing provides satisfaction to consumer. By matching the product to consumer need, consumer get satisfaction.

Importance to Organization

Marketing plays vital role in an organization. The importance of marketing to the organization can be classified in following ways.

I) Demand Management: Through the various promotional tools of marketing stimulate demand. Such tool s inform, remind and encourage costumer to purchase product.

Ii) Product Distribution: Marketing distribute products manufactured by the organization. It distribute the product of right quality in right time to right place in right quantity.

Iii) Coordinated usage of resources: Marketing identifies market opportunity in target markets. Organization can choose the most profitable segment. Integrated approach to marketing facilitate the coordinated use of resources.

Iv) Objectives achievement: The main target of marketing is to achieve organizational objectives. Marketing mix can be changed to meet competition and consumer need.

V) Environmental Adaptation: Marketing monitors and identifies environmental changes to identify important trends. Changes in consumer preference resulting from technological, economic, poltical and socio-cultural forces can be monitored. This helps organization to adopt in dynamic  environment.

Importance to Society:

I) Bears social responsibilities: Marketing bears social responsibility objectives along with its other objectives. Marketing concern for safe guarding about social needs. The societal interest to are protected through environmental quality < Natural resources are properly used. Pollution is controlled. Eco friendly products are made to promote social interest. Planting trees, reflecting used materials, and saving on energy use also enhances social well being.

Ii) Employment Generation: Marketing is an important source of generating employment opportunities. About 33% of people of world are engaged in marketing activities.

Iii) Economic development; Marketing activities accelerate business activities. It helps industrialization. It is the important tool for economic management. Most economic decision are affected by marketing.

Approach to the study of Marketing

A) Commodity approach to Marketing: This approach focuses on flow of commodity. According to this approach marketing is the function of flow of commodity from source of production to the place of consumption. It is concerned with demand, supply, channels and transportation. This approach is prevalent in agro- oriented economics.

Advantage:

I) this approach is concerned with flow of specific commodity from supplier to consumer.

Ii) This approach establishes marketing system for each commodity.

Disadvantage:

I) this approach results in duplication of marketing efforts.

Ii) It is time consuming and costly.

B) Functional Approach to Marketing: This approach focuses on different functions of marketing. It is concerned with the following functions of marketing.

I)Exchange Function: This is the primary function of marketing. It is related with the buying and selling function. Buying function involves demand forecast, identification of supply sources, purchase of raw material, machinery and IT. Where as selling function involves identification of costumer, demand stimulation, price fixation and promotion. It is the key function of marketing.

Ii) Distribution Function: This is the supporting function of marketing. It covers the area of transportation and storage. Finished products are transported to the consumer through the means of transportation and storage is related with inventory management.

Iii) Facilitating Function: This is the auxiliary function of marketing it involves standardization, finished goods are standardized and graded. Financing needed financial resources can be fulfilled by loan. All types of marketing risk are managed and insurance. All the information are flowed and gathered and research and development are done about new trade, competitors and environmental dynamics.

Advantages; This approach is concerned both with flow of commodity and institutions in the movement of goods. It gives emphasis on the function of marketing.

Disadvantages: This approach gives more emphasis to the marketing function where as it ignores costumer needs.

C) Institutional Approach: This approach focuses on various institutional involved in marketing. They can be related to product, price and promotion. There are several institution related to marketing.

Producer and manufacturers: Produce raw material, manufacturer convert raw material into finished goods.

Middleman: Wholesaler, Resellers, Agents etc.

Facilitating institution: transportation agencies, public warehouses( provides facilities for storage of goods.) , Advertising agencies, financial institution, Research and consultancy firms( solves marketing problems)

Advantage: the understanding of institutions helps marketing and its cost can be reduced through proper selection of institution.

Disadvantage: This approach does not provide a total view of marketing and its also ignores costumer needs.

D) System Approach to Marketing:  This approach is system oriented. A marketing system is collection of interrelated and interaction parts to achieve objectives. Marketing system consists of input, processing, output, and feedback components that operates in a dynamic environment.

A) Input: It includes the marketing mix element: product, price, place and promotion.

B) Processing: It consists of environmental influences and buyer decision for purchase

C) Output: It consists of objectives achievement in terms of profit, service, growth, survival, leadership.

D) Feedback: It provides information to redesign inputs and processing.

E) Environment:   These components as well as the whole system are affected by dynamic environment. This may be the internal environment and external environment.

Advantages:

I) Synergy: In this approach marketing does not give undue importance to any one element of marketing mix. It looks at the total pictures.

Ii) Marketing effectiveness: Marketing objectives are effectively achieved. Marketing resources are efficiently utilized.

Iii) Changing forces in the environment are carefully considered in designing the marketing mix.

Disadvantages: It ignores costumer needs. It is difficult to implement.

E) Environmental Approach to Marketing: This approach is concentrated to the environment within which it operates. Marketing operates in a dynamic environment. It should continiousualy   monitor and adopt to the changing environment to achieve objectives. There are mainly two forces of environment which affects the marketing , they are internal forces and external forces.

F) Managerial Approach to Marketing: This approach is management oriented. It focuses on managerial decisions related to marketing. It emphasizes achievement of goals by getting marketing jobs done through people. This concept basically gives emphasis on following managerial means:

I) Marketing Planning:

It is the process of setting marketing goals and choosing future marketing action to achieve these goals. It includes the SWOT analysis, establishment of marketing goals., selecting marketing action to achieve goals, designing marketing mix, co-ordination of marketing activities etc.

Ii) Marketing Implementation: Implementation means assignment and direction of human resource to carry out the marketing plan in a co-ordinated manner. In this phase human resources are hired, channel for distribution are selected, physical and financial resources are provided. Organization   climate is created by improving the quality of work environment.

Iii) Marketing Control: It ensures that the right things are done in the right manner and at the right time. Marketing control is the measurement and correction of marketing performance to achieve planned goals. This process includes the establishing standards, measuring actual performance, finding deviation( difference between actual performance and standard performance.) And taking the corrective action.

Advantages:  This approach uses both qualitative and quantitative techniques for marketing decision making. Timely decision making helps marketing to achieve objectives.

Disadvantages: This approach ignores costumer and the environmental dynamics.

G) Economic Approach to Marketing:

According to this approach marketing is the process of buying and selling of goods and services. Wants are unlimited but resources to fulfill those needs are scarce. Marketing helps to make effective use of scarce resources.

The assumption of this approach are:

-  There are many individual firms in the market.

- The objectives of these firms is to maximize profit.

- The buyer wants to get maximum satisfaction.

- both the buyer and seller have complete information about market.

- Price is determined by the interaction between demand and supply.

Advantages: this approach is well developed and popular among economists.

Disadvantages: This approach is based on various assumption and has no relevance in the world of mar

Arketing BBS 2nd year ( chapter-2) Marketing environment.

 

Chapter-2

Marketing Environment

 

Marketing environment refers to those factors, forces, which influence the exchange relationship of marketing with target costumers. Marketing environment can be classified into two category. One is 'Micro' and another is 'Macro'.

 

Define Micro environment of marketing and describes its factors.

 

Micro environment refers to all those internal forces of the organization which influence the marketing activities. The area of micro environment is within the territory of the organization itself, which consist of organizational activities, scope and stakeholder. It provides strength and weakness to marketing. Micro environment of marketing consist the following factors:

1) Organizational Activities:

 

A) Production: production is directly related with marketing which directly influence the marketing activities. Product need to be produced before they can be marketed. The expansion or reduction in the production directly affect the marketing activities.

 

B) Finance: The proper financial competitiveness is needed to accomplish all marketing activities. New product development, additional production facilities and promotional activities need finance. Thus this directly influence the marketing activities.

 

C) HRM :  Qualified and capable HR is needed to carry out marketing activities effectively.

 

D) Research and Development: research and development play .........
A significant role in marketing. It facilitates organization to match marketing mix to costumer needs.

 

2) Organizational Scope: It include the organization's objectives, organization structure, Organizational Resources, Organizational culture(value, norms etc.)

 

3) Stakeholder: the stakeholder are the foundation to the organization from which the organization taken place and organization's objectives are targeted. Micro environment is made up of stakeholder. They may be the outside organization or group who affect the activities of marketing and are affected by marketing. They have a stake in the performance of marketing. The stakeholder include Costumer, Suppliers, Competition etc.

 

4) Marketing Intermediaries:

I) Middleman ( wholesaler, retailer)

Ii) facilitators: ( facilitate physical movement of product, Transporters, warehouse, clearing and forwarding agents)

Iii) Market service Agencies: ( advertising agencies, credit information agencies, marketing research and consulting firms.) Which helps in promoting products.

Iv) financial institution

V) Labour Union

Vi) Pressure group.

 

Macro Environment of Marketing

Define Macro environment with its forces .

Micro environment can be defined as the set of external condition and forces that influence the performance and outcomes of marketing. It provides opportunities and threat for marketing. It is out of the control of the organization. The following are the component/ forces of macro environment.

I) Political Forces:

The political environment consist all those factors of public affairs such as political system, political institution etc.

Ii) Legal forces:

It refers to rules of conduct enforced by the state. Legal environment of marketing refers to all the legal surrounding that affect marketing activities. It protects the right and interest of marketers, consumer, employees and the society. It consist of business law related with marketing activities , courts of law and law administration.

2) Economic forces:

Economic forces refers to economic surrounding that influence marketing .activities. They consist of economic parameters that provide the climate for survival and growth of marketing. They ultimately influence resource allocation, cost, profit, and consumer spending. It consist of:

I) Economic System: ( free market economy, Centrally planned economy, Mixed economy)

Ii) Economic policies: ( Monetary policies, fiscal policies and industrial policies.)

Iii) Economic condition: ( Business cycle, Income, Inflation, Natural resources, Globalization)

3) Socio- Cultural Forces:

Social forces refers to social surrounding that influence marketing. It consist of factor related to human relationship. There are many social factors that affect the marketing activities they are given below:

I) Demographics: (Concerned with human population and its distribution)—Population size, population growth, Age mix, Urbanization, Distribution and Migration.

Ii) Social Institution: ( Family, reference group, Social class)

Iii) Social changes and life style.

4) Cultural forces:

(Knowledge, customs, traditions, values, religion, language, symbols , works, art and architecture which is created by society.)

It include Attitudes, values and beliefs and types of product.

5) Technological Forces:

Technology refers to the means or method of converting resources into product. It consist of skill, methods , system and equipment. Technology influence marketing by bringing changes in jobs, skill, life style, product, production methods and processes. Hence technology directly influence the marketing activities.

 

Chapter-3

 

Marketing Segmention and Targeting

 

Define marketing segmention and describes the requirements for effective market segmention.

A market is regarded as a group of customers. Market aims at satisfying the demand of customers. Market consist of customer’s needs and wants, purchasing power and willingness to spend. Product and exchange relationship. Generally a segment consist of group of customer who have similar need and characteristcs. Marketing segmention is the process of dividing the total hetrogenious market into different homogenious market which consist similar needs and characteristcs.

According to Philip kotler: “ Marketing segmentation is the act of identifying and profiling distinct groups of buyer who differ in their needs and preferences.

 

Generally marketing segmention implies the following factors:

 

I) Division of total market into groups.

Ii) The group should be large enough for marketing purpose.

Iii) The group should be homogenious in preferences.

Iv) The customer in a group should have similar needs and characterstics.

 

The following factors are the requirements for effective marketing segmentation

 

A) Measurable: The size, needs, purchasing power, and characteristcs of the customers in the segment should be measurable. If the needs or size can be measured in terms of number, the sales and profit can be easily calculated.

 

B) divisible: There must be clear-cut basis for dividing customers into homogenious group. Each segment.......
Should be homogenious in customer’s need but should be distinct with other segments. This means the segmenation will be effective if each segment can be easily differentiable.

 

C) Acessible:  The segment should be accessible through market institutions such as distribution channels, advertising media and sales force. There should be middleman to distribute the product and should be reachable and serviceable.

 

D) substaintial:  the segment should be substantial, it should be large enough in terms of customer and profit potential.

 

E) Actionable: Segmentation should be actionable, organization should be able to formulate and implement the differrent marketing mixes.

 

 

Beinifit of marketing Segmentation

 

I) Identification of Market oppertunities

Ii) effective use of market resources.

Iii) Competitive response

Iv) Market specialization

V) Environmental Adaption.

Vi) Objective Achievement.

 

 

Descibes the process of market segmentation.

 

The market segmentation process consist of several step they are given below:

 

1) Market Survey:  Market is the total sum of current and future demand of any product. Thus segmentation requires investigation of the total market characterstics. Market survey should be conducted in order to collect information regarding:

 

-         customers needs and characterstics

-         Product attributes desired by customers.

-         Brand awareness by customers.

-         Product usage patterns and usage rate by customers.

-         Customer attitudes toward the product

-         Preference patterns of customers.

 

2) Identification of Market segments:  the various information collected from market survey is analyzed detally focusing on customers needs, and their characteristics. Then needs are gathered in a homogenious group. Each homogenious group is called market segment. Factor affecting product demand are classified into major and minor factor. Cluster analysis is used for the purpose of segment identification.

 

3) Segment profiling:  In this process the variables for segmentation are identified. They can be geographic, demographic, psychographic and behavioral, According to the types of market. Each segment is profiled in terms of similarities in demand and characterstics of customer groups. The process ultimetly help in the selection process.

 

4) Segment evaluation/ Selection:  Organization cannot fulfill all the demnad of customers, so organization select one or more segment after their careful evaluatiohn. The chossen segment becomes the target market.  Market segmentaion should be done periodically to cope with environmental changes.The following factors are taken into account while selecting and evaluating the segment.

 

I) segment attractiveness in terms of size, growth, profit, competiton, technology,customer loyalty, risk.

 

Ii) Organizational objectives and resources.

Iii) segment relation and co-operation

 

Iv) Ethical consideration in terms of enviromental and social well being.

V) government policies and laws.

Vi) Market coverage desired.

 

5) Product positioning:  product positioning is the new thinking in marketing. It is concerned with making organization’s brand differs in relation to its competitors brand in the mind of target customers. It is an attempt to create a brand image in the min d of customers, which provides competitive advantage to the producers and target customer. Product positioning makes the product differentiation meaningful. It begins with the product brand name. Product positioning is based on the following variables:

 

Attributes: size, colour, taste.

Price: High, medium, low or superior quality.

Technology: Manual, automatic, computerized, robotized.

Service:  per sale, during sale, after sale service.

Competition: Better than competitor, cheaper maintenance.

Use: many uses of the product.

Benefit: End benefit from purchase like health, beauty, prestige etc.

Category: leader in the product class.

 

Evaluation of market segment                ( IQ)

 

The factor that should be considered for segment evaluation are given below:

 

1) Segment Attractiveness: The following characterstics determines the segment attractiveness:

 

I) Size and growth: The size of total demand should be large as much as possible for the segment and it should have potential for market growth.

 

Ii) Profitability: The segment should be attractive in terms of long term profitability.

 

Iii) Competition: The level of competition is another factor that should be considered before selecting segment. The strength and weakness of existing competitiors and potential competitiors should be evaluated carefully.

 

Iv) technology: the segment should be evaluated in terms of technological requirement. If the segment requires new and advance technology there will be more expenses for those technology.

 

V) Customer loyalty: If the customers are loyal to other products of competitor and there is very little chance of shifting the brand then the segment can be very difficulet to choose. This means such segment can be evaluated as lower attractive.

 

Vi) Risks: the risk of investment in the segment should be evaluated. Lower risk make the segment attractive.

 

2) Organizational Objectives and resources: The segment must be evaluated in terms of organizational  objectives and its resources. The segment should be consistent with the organization’s long term objectives. The segment’s attractiveness should be matched with the availability of human as well as non- human resources. The organization should possess requisite skill and resource to succeed in the segment.

 

3) Segment relation:  Segment interrelationship and segment co operation are other important varables to evaluate the segment. Organization should pay attention to segment interrelationship in terms of cost, performance and technology not only that the possibilities for inter segment co- operation should also be evaluated to improve overall organizational performance.

 

4) Ethical Consideration: Business activities should be ethical. It should be carefully considered for well being of the customers and entire society. Before selecting segment, it should be carefully considered about environmental concern to be paid by business.

Chapter-4

 

Marketing Information System

 

Define MKIS .

 

Information is the proocessed data derived through data analysis. Organization need information to respond to environmental changes as well as to make decision. So in order to collect updated, reliable information regularly, organization need to design and use an effective marketing information system (MKIS). Thus a MKIS is a unified system of interrelated parts to provide information support to achieve marketing objectives. It consist of input- processing- output and feedback components.

 

According to Philip Kotler “ MKIS consist of people, equipment and procedures to gather, sort,analyze, evaluate, and distribute needed, timely and accurate information to marketing decision makers.”

 

The MKIS components are given below:

 

I) Input: It consist of data generated from internal and external sources.

Ii) Processing: It consist of activities related to data sorting, analysis, evaluation, storage, retrieval and dissemination.

 

Iii) Output: It consist of regular and special report needed for marketing decision making.

 

Iv) Feedback: It provides information to redesign input and processing to meet changing need of marketing.

 

 

Features of MKIS

 

I) Inter-related components:  MKIS is a set of inter-related components which consist of people, equipment and procedures. Information and communication technology is used to deliver it.

 

Ii) Processing:  MKIS collects, processes, analyses, stores, retrieves, and disseminates information for decision making and control.

 

Iii) Timeline: MKIS provides right information to right people at right time.

 

Iv) Accuracy: It provides accurate and reliable information.

 

V) Consistency: It provides consistent information based on same definition, assumption and time period.

 

Vi) Accessibility:  The information is easily available to authorized person through communication technology.

 

 

Importance of Marketing Information System                      (IQ)

 

A) Marketing Planning:  MKIS provides updated, reliable, and accurate information which helps marketing to predetermine future courses of action. It also helps to set objectives and standrads of performance for marketing planning. Marketing oppertunities can be identified and strategies can be formulated in order to achieve them.

 

B) Marketing performance Implementation: MKIS helps to analyze various information such as sales trends, stage of product life cycle, pricing and non- pricing strategies of compititors, changing preference of consumer. Marketer design and impliment marketing mix on the basis of such information.

 

C) Marketing control: MKIS facilitates continuous monitoring of marketing performance for timely corrective action. Deviation between standard and actual performance  can be analysed and corrected with the environmental dynamics.

 

D) Marketing Coverage: MKIS provides information to increase market coverage. It can be single or multiple segment coverage. Marketing information also helps to create demand.

 

E) Environmental Adaptation: The major function of MKIS is to provide information about changing needs and preference, innovation and external changes. This helps organization to identify oppertunities and face threats. New startegies can be made to adapt in changing environment.

 

F) Marketing Decision making: Marketing decision making is based on marketing information provided by MKIS. It’s help them to understand the problem, identify and evaluate alternatives and to make a choice, through which the decision can be easily made.

 

 

Components of Marketing Information System

 

1) Internal Record System: Every organization keep records of all transectional and non- transectional data such as: order, shipping, annual report, sales trends, financial statement etc. The system which keep such internal record is called internal record system. They consit of:

 

I) Customer related records: It includes order, invoices, shipping documents, inventory records, payment records, customer demands and their profile.

 

Ii) Sales Report: Sales reports submitted by sales force provide information about performance of brands, sales trends and customers expectation.

 

Iii) Other Report: It includes annual reports, finanicial statement, audit report, and other special report as per requirement which provede useful information.

 

2) Marketing Intelligence System: Marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about pertinent developments in....
The marketing environment. It provides information about everyday happening in the marketing environment. The information derived from MIS are collected from the following sources:

 

I) Marketing Managers: They read books, newspaper, trade publication and even talk with customers, suppliers, distributors to gather information.

 

Ii) Sales force: They find and report new development in the market place and motivate the organization for marketing intilligence purpose.

 

Iii) Middlemen: They handle several product and usually know in advance about competitor’s move.

 

Iv) Specialists: They are appointed to gather marketing intillegence.

 

V) Outsourcing: Commercial detectives are hired to gather specific  information. Data can be purchased from research firm.

 

Vi) Marketing Information section: It is a special section which scan the environment and surf internet to gather information.

 

3) Decision Support System: A DSS is a procedure that allows a manager to interact with data and methods of analysis to gather, analyze, and interpret information. It helps marketing manager s to make better decision. It does not collect information rather it stores, analyses and synthesizes the collected information. It has the following components:

 

I) Data Bank: It stores different types of data collected from varous sources such as internal reports, market intelligence and market research which are about cfustomers, competitors, environmental trends and organization’s performance.

 

Ii) Method Bank: DSS consist of set of different statistical tools ranging from simple procedure to sophiscated methods. They help mangers to analyze the information and make decision. It consist of following staistical tool:

 

-         Multiple Regression

-         Discriminate Analysis

-         Factor Analysis

-         Cluster Analysis

-         Conjoint Analysis

-         Multidimensioanal Scaling.

 

Iii) Model Bank: It consist of interrelationship between different variables that help decision makers to understand, predict and control marketing problems. Model bank consist of :

 

Model

 

-         Markov model

-         Queuing Model

-         New product pretest Models

-         Sales Response Models

 

Optimization Routinee

 

-         Differential Calculus

-         Mathematical programming

-         Game theory

-         Heuristics

 

4) Marketing Research:  Marketing research is the systamatic design, collection, analysis, and reporting of data and finding relevant to a specific marketing situation facing the company. It helps organization to resolve the marketing proble through different alternatives. It is a tool for identifying market oppertunities and to minimize threats.

 

The features of marketing research are given below:

 

I) Systamatic: Marketing research is a systamatic process which is properly planned and implimanted

 

Ii) Objective: It is objecticve in collecting, analyzing, interpreting and reporting data.

 

Iii) Problem oriented: It deals with specific marketing problems.

 

Iv) Decision Making: Marketing research ultimetely aimed at helping the marketing managers for decision making.

 

(note: features may not be included for the answer)

 

 

Very important question

 

Define marketing research , describes the various process include in marketing research.

 

Marketing research is the systamatic design, collection, analysis, and reporting of data and finding relevant to a specific marketing situation facing the company. It helps organization to resolve the marketing proble through different alternatives. It is a tool for identifying market oppertunities and to minimize threats.

 

Process of Marketing research:

 

1) Define the problem: Problem provides the foundation to marketing research, it determines the scope of research. Thus it should be defined carefully neither too broadly nor too narrowly. It should be defined in such a way, in which the researcher can find out the core of the problem easily and the problem should not be mixed with symtoms. For example: If the sales of Nepali garments decline due to high price, sales decline is a symtoms and high price is the problem. Problem identification can be based on:

 

A) Literature review

B) Experience survey: Conversation with qualified persons inside and outside the organization who possess knowledge and experience.

 

C) Case Study: Exploratory study of the organization to identify the problem.

 

D) brainstroming: Ideas are generated spontaneously through group creativity. Free wheeling is encouraged but criticism is disallowed.

 

2) Stating Research Objectives: Objectives of research is the important phenomenon which specify the information required for research. Thus it should be stated clearly. They also determine the research design. Objecitve should follow from the problem defined for research hypothesis can be posed.

 

3) Developing Research plan: It is the research methodology for gathering the needed information. It deals with the decision on:

 

 

A) Data Sources: It may be the primary and secondary data. Secondary data are collected earlier for other purpose. It includes internal report of organization, book, government publication etc. While primary data refers to data collected for the first time for a specific purpose.

 

B) Research Method;  They are used for collecting primary data: they are:

 

-         Survey: It involves direct questioning of people to gather facts, opinion and other information.

-         Observation: It is the process of collecting information by watching the action of people on setting.

-         Focus group research: It is the method of collecting information by gathering of small group of 6 to 10 people who are invited to spend a few hours with a skilled moderator to discuss the research problem.

-         Experiment: It is the method of collecting data by lab or field experiment.

-         Consumer panel: In such method a panel of group of people serves as subject of survey.

 

C) Research Instrutment: It may be the questionnaire or Mechanical instruments.

 

D) Sampling plan: Sampling is the process of selecting small units from the total population for collecting data. It includes sampling unit, sample size and sampling procedure.

 

E) Contact Method: This is the method of contact to respondent. This can be mail method, interview or computer.

 

F) Analytical tool: It include the statical tools such as mean, regression, correlation, variance for analyzing information.

 

4) Collection of Needed data: Collection of primary data involves field study. Skilled personnel are used to collect data. Information are collected with recording the response of interview questionnaires. The information should be usable and relevant.

5) Analysis of Data: It involves coding, tabulating and statical analysis to analyze and interpret the collected data objectively. Now a days computer technology is used to interpret the data effectively.