Marketing Aptitude Study Material – Marketing Research

Marketing Aptitude Study Material – Marketing Research

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Marketing research has two words viz marketing and research. Marketing means buying and selling activities and research means a systematic and complete study of a problem done by experts. Thus, we can say that marketing research is a systematic method of collecting, recording and analyzing of data, which is used to solve marketing problems. It is a special branch and soul of marketing management. It is widely used by manufacturers, exporters, distributors and service organisations.

Characteristics of Marketing Research

• Marketing research has a very wide scope which includes product research, packaging research, sales research, etc.
• It is a scientific method of solving the marketing problems.
• It is an important tool for decision-making.
• It is a commercial intelligence-gathering activity.
• It is a component of Marketing Information System (MIS).
• It reduces the gap between the producers and the consumers.
• It gives much importance to accurate data collection and its critical analysis.

Elements of Marketing Research

•  Market research
• Sales research
• Product research
• Packaging research
• Advertising research
• Business economic research
• Export marketing research

Types of Marketing Research

• Product analysis
• Market analysis
• Distribution analysis
• Competition analysis
• Consumer research
• Sales analysis
• Motivational research
• Advertisement research

Methods of Marketing Research

Methods of marketing research used to collect data regarding marketing are as follows

1. Questionnaire Method: This method is frequently used in quantitative marketing research and social research. They are a valuable method of collecting a wide range of information from a large number of individuals often referred to as respondents.
2. Experimental Method: It is a research technique in which a researcher observes the results of changing on or more marketing variables, while keeping other variables. Experimentation involves establishing a controlled experiment or model that stimulates the real world marketing situation being investigated.
3. Observation Method: Through this method, marketing specialists are able to identify actions and watch our subjects respond to various stimuli. For a small business, observational marketing research is one of the most simple ways that one can find out many things about their customers and clients.

Steps in Marketing Research

• Define the problem and research objective.
• Analysis of the problems.
• Determine the information needed.
• Determine the sources of information.
• Decide the research methodology to be adopted.
• Tabulate, analyse and interpret data.
• Prepare the research report.
• Follow up the study.

Needs of Marketing Research

• Marketing research provides an opportunity to the enterprise to start the production of new product.
• It explores new uses of the products of the enterprise.
• It provides important information which help the enterprise in deciding its marketing policies, strategies and programme.
• It helps the enterprise in the selection of particular channel of distribution for distributing its products.
• It collects and analyses the data in respect of products and services offered by the competitors to the consumers.
• It makes a thorough study of the demand of products of enterprise.
• As marketing research helps in making sales forecasts, the enterprise can establish harmonious adjustment between demand and supply of its products.
• It makes an intensive and extensive search of new markets for products of the enterprise.

Limitations of Marketing Research

1. Marketing research is a process involving heavy expenditure. So, it can be adopted by the enterprise of large scale only.
2. Marketing research is the process involving the need of sufficient time. If time is short the research scholar has to depend upon secondary data, the reliability of which is always doubtful.
3. The success of marketing research depends to a great extent on the ability, efficiency and experience of research scholar.
4. If the research scholar is biased to the problem, the results of such research will not be reliable and the purpose of marketing research cannot be served.

Rules to Use Marketing Research

Different rules to use marketing research are as follows

1. Product: Search new products, their use and their properties.
2. Consumer:  Search information about the consumers that who are they? Where do they reside? etc.
3. Markets and their Ability: Study about the place and ability of the markets.
4. Sales Policy: Study about the regional division.
5. Packaging: Check the design and appropriate package.
6. Dealers: Check the manners of their business.
7. Officer: Gather facts about the position of a particular person.
8. Competition: Decide about the weakness of the position of each competitor.

Tit-Bits 

• Decision regarding product diversification can be taken after research of products and services.
• No business and industrial enterprise can achieve its marketing objectives in the absence of advance research.
• Low response rate is a problem associated with online surveys method.
• Consumer analysis involves the detailed study of the popularity of product among consumers.
• The research which is basically concerned with establishing cause and effect relationship, is called casual research.

Check Your Skills

1. Marketing research is a gift of

1. modern concept of marketing
2. classical concept of marketing
3. traditional concept of marketing
4. old concept of marketing
5. basic concept of marketing

2. Small business houses cannot afford marketing research because of the

1. limitation of money
2. limitation of time
3. limitation of skill
4. limitation of bias
5. None of these

3. Which of the following statements is true? [SBI Clerk 2008]

1. Marketing makes the company to go into loss due to higher expenses
2. Marketing is not required in profit-making companies
3. Marketing sharpens the mind of the employees
4. Marketing is a time-bound seasonal function
5. Marketing is a waste of time

4. Marketing research is required for [SBI Clerk 2012]

1. deciding sales volume
2. eciding production level
3. deciding marketing strategies
4. deciding sales team numbers
5. All of the above

5. What is one of the sources of collection of data?

1. Internal
2. External
3. Traditional
4. Both ‘1’ and ‘2’
5. None of these

6. What is the limitation of marketing research?

1. Limitation of money
2. Limitation of time
3. Limitation of skill
4. Limitation of bias
5. All of these

7. What is the decision that can be taken after research of products and services?

1. Development of products
2. Product diversification
3. Product simplification
4. Changes in product
5. All of the above

8. Market research is necessary for [SBI Clerk 2011]

1. making proper marketing decisions
2. choosing the right products
3. selecting the right sales persons
4. All of the above
5. None of the above

9. Research which relates to entire market is called

1. market research
2. field research
3. product research
4. taste research
5. attitude research

10. What is the very first step of Marketing research?

1. Define the problem
2. Create the problem
3. Solving the problem
4. Analyse the problem
5. None of these

11 ……. can adjust demand and supply of products of company.

1. Planned production
2. Non-planned production
3. Total production
4. Average production
5. Marginal production

12. If marketing is done effectively which of the following is not required? [SBI Clerk 2008]

1. Advertisement
2. Publicity
3. Market research
4. Market segmentation
5. None of the above

13. A companys own observational research produces what we cell primary data.

1. False
2. False in short run
3. False in long run
4. True
5. True when primary data is collected

14. Comparative study is made by

1. tabulation of data
2. analysis of data
3. preparation of data
4. follow up
5. All of the above

15. How production of new product helps enterprises?

1. Capturing the market
2. Loose the market
3. Research the market
4. Create the market
5. Leave the market

16. As marketing managers and researchers define the problem and set research objectives, they should employe

1. exploratory research alone
2. casual research alone
3. descriptive research alone
4. All of the above combined
5. None of the above

17. Market research is very necessary

1. when new product is to be launched
2. consumer behaviour
3. packing
4. campaign
5. None of the above

18. Which concept signifies the importance of marketing research?

1. Production of products
2. New use of products
3. Knowledge of demand
4. Planned production
5. All of the above

19. Market research is needed for [SBI Clerk 2008]

1. deciding the market area
2. deciding tlie right product to be sold
3. making proper marketing decisions
4. deciding right time to sell
5. All of the above

20. No business and industrial enterprise can achieve its marketing objectives in the absence of

1. marketing research
2. product research
3. consumer research
4. simple research
5. advance research

21. Name the concept which meant to study the satisfaction of customers.

1. Research
2. Research of products and services
3. Research on markets
4. Research on sales methods and policies
5. None of the above

22. In general sense, marketing research is……. regarding goods and services.

1. collection
2. summary
3. analysis of the data
4. All of the above
5. None of the above

23. Under which important researches, the product and services offered by competitors?

1. Existence in competitive situation
2. Existence in market
3. Existence in product line
4. Existence in product planning
5. None of the above

24. What is the concept include in marketing research?

1. Research of product and services
2. Research on markets
3. Research on sales
4. Research on sales methods and policies
5. None of the above

25. The main object of marketing research is to

1. prepare market policies
2. amend market policies
3. prepare market strategies
4. amend market strategies
5. All of the above

26. The systematic gathering, recording and analysing of data with respect to a particular market is known as [SBI Clerk 2012]

1. market share
2. market segmentation
3. market profile
4. market research
5. marketing research

27. Low response rate is a problem associated with which contact method?

1. Personal interview
2. Telephone
3. Online surveys
4. Mail
5. None of these

28. Telephone interview offer

1. speed in gathering data
2. a low non response rate
3. potential fox reaching all house holds
4. the highest cost method for collecting data
5. All of the above

29. Under which analysis study involves the detailed study of the popularity of product among consumers?

1. Product analysis
2. Market analysis
3. Consumer analysis
4. Competition analysis
5. Sales analysis

30. The fields analysed under research on markets is to

1. Study the nature of customers
2. Study the habits of customers
3. Study the tastes of customers
4. Study the attitudes of customers
5. All of the above

31. Second step in marketing research is

1. situation analysis
2. problem analysis
3. collection of data
4. tabulation of data
5. All of these

32. Which research is meant to forecast the demand of products on the basis of analysis of markets?

1. Research on product
2. Research on market
3. Research on policies
4. Research on sales
5. Research on consumers

33. Market survey means [SBI Clerk 2009]

1. market research
2. market plan
3. marketing strategies
4. market monitoring
5. All of these

34. Which of the following researches is meant to study different aspects of sale in an enterprise?

1. Research on sales methods and policies
2. Research on sales market and policies
3. Research on sales product and policies
4. Research on customer and policies
5. Research on sales advertisement and policies

35. Marketing research usually begins with gathering primary data.

1. True in case of PSU’s
2. True in case of EOU’s
3. True
4. False
5. False in case of cottage industries

36. Research depends on

1. data
2. consumers
3. market
4. competitors
5. product

37. Every company makes efforts to provide the goods and services to the consumer at

1. right time
2. right place
3. as per their taste
4. Both ‘1’ and ‘3’
5. ‘1’ , ‘2’ and ‘3’

38. The aspect which is studied in research on sales methods and policies is

1. classification of sales territories
2. amendments in sale territories
3. study of competitors sale territories
4. development of new sale territories
5. All of the above

39. Market research is useful for [SBl PO 2010]

1. deciding proper marketing strategies
2. deciding the selling price
3. choosing the right products
4. choosing the sales persons
5. All of the above

40. Today’s market managers can never have too much information.

1. True
2. True in public limited companies
3. True in cottage industries
4. False when market is small
5. False

41. Primary data possesses the advantage of being

1. low cost as compared to secondary data
2. available to any interested party to use
3. free of interview bias
4. relevant to the problem at hand
5. All of the above

42. Which of the following is a type of research data?

1. Complex
2. Primary
3. Secondary
4. Traditional
5. Both ‘2’ and ‘3’

43. The research which is basically concerned with establishing cause and effect relationship, is called [SBl Clerk 2008]

1. diversified research
2. technical research
3. casual research
4. predictive research
5. exploratory research

44. Study of the different media of advertisement is called

1. advertisement research
2. product research
3. market research
4. potential research
5. miscellaneous research

45. Consumers can be divided into different parts under consumer research on the basis of

1. age
2. sex
3. education
4. Income
5. All of these

46. Distribution analysis analyse the problems of

1. storage
2. transportation
3. advertisement
4. sales promotion
5. All of these

47. Wide publicity of new uses of product can

1. create new market
2. create new customer
3. save tax
4. make fraud dealings
5. Both ‘1’ and ‘2’

48. Producers use to send their product to the customers with the help of

1. doordarshan TV channel
2. distribution channel
3. midway channel
4. market channel
5. competitors channel

49. Which of the following studies analyse the nature of customers?

1. Important information about customers
2. Important information about market
3. Important information about product
4. Important information about competitors
5. Important information about government

50. Which of the following is a type of analysis included in marketing research?

1. Product analysis
2. Market analysis
3. Distribution analysis
4. Competition analysis
5. All of the above

Answer Key