Welcome friends to the course of marketing
research and analysis well this course has a great value in today’s term and everywhere
you see today there is a you know the topic of research and analysis data analysis which as in
fact become one of the most discussed topics in the world of business and around right so I am dr.
J.K Nayak Jogendra Kumar Nayak from the department of management studies I have been teaching this
course for a while now almost you can say seven years right now and maybe I have conducted about
a dozen of courses on this same subject.
So what is this course all about and what I will
be going to get at the end of the day is what we are going to discuss so I will brief you about
the course my contents and all so for example If I start like this let us say marketing research.
Analysis so there are two parts of this subject the first part includes the theoretical portion
which is where I say is most important because after all if you do not have a foundation if
you do not have a control over theory your understanding of your theory then one cannot apply
the tools and techniques in a proper manner and this is what happens in most of the cases in
the real world that there is a miss match.
Students come to me and scholars come to me and
check and ask key how to solve the problem or how to come out with a solution and then I ask them
what is your problem all about and that’s what some time I see people do not understand okay
so I will try to brief you in this 20 sessions which I have so first few parts I will cover
the aspects of marketing research so covering what is marketing research and introduction and
then what are the different constituents of it what are the different parts of the marketing
research process what is the research design basically and how do we formulate a problem.
How do we move ahead in the research design and what are the types of research design all these
things we will see right and then finally comes the data analysis part the next part of it
the major part if it, so let us start begin the class so let me start with the since the name
marketing is there I think everybody should know what marketing is all about right so as it say
because marketing research is part of marketing.
We should understand three things what
is marketing, what are the concepts of marketing and what is marketing strategy all
about right because see the basic idea is why should you study this subject, this subject
is to be studied because the end result is that you are going to do something beneficial
for a firm or a company or an organization in may be in terms of increase in market share.
May be in terms of increases in profitability may be in terms of increasing the customer
base whatever it is, so how would you do it because one has to understand keep marketing
is got some there is some difference between marketing and others fields are the management
right marketing is more connected with the consumers at large so if you want to connect
the consumer if you want to bring the consumer to your side how what should do so that is
what marketing research talks about okay.
So let us go with what is the first definition
of marketing so marketing as been defined as a process of creating if you can see as
a process of creating, communicating and delivering value to the customers and for
managing the customers relationships in fact in marketing in management it has been said
that getting a new customer is 5 times more costlier than retaining the customer right.
So in such a condition how to connect with a costumer becomes a very important part of
marketing right okay what are the marketing concepts in fact when I say the word concept we
have to understand since the you know the time the firms evolved the time when you know the
theory of the nature of the firm was published by Coase and Ronald Coase and things like
transaction cost economics came into place at one point of time there was the production was
called to be at the helm of the affair right.
So the most important thing was the production and
the customers were at the receiving end okay but today it has changed it has changed drastically
let see what has happened so if you look at it.
Now it is a business philosophy that that holds
the key to achieve the organizational goals and consist of the companies being more effective
than competitors in creating delivering the customer value, now what are the concepts there
are five concepts of you can see this okay, these are the five concepts production concept as I said
started with it, then we moved on to the product people said in the production that whatever
you produce it will be sold in the market, so the manufacturer was the king right.
Then came the product concept where they said every good product would sell on it
is own, so nothing is required then they thought maybe it is not working so we have to
push our ideas we have to sell our products, so maybe you know sales teams where organized and
things turned up the way and companies started pushing that products right, but that also
has it is own disadvantage so then companies started realizing what to do, how to move ahead
how to bring the customer to our side now.
So that came marketing concept where they said
you have to understand and identify the customer’s needs and wants and accordingly then produce the
product or service so that then you do not have to push the product to the consumer but rather
the consumer the consumer will come towards the company or the product, so if I draw it, it
is something like if you see in this let say if this is that the firm is initially the firm
was selling to the consumer right but now.
We are trying to reverse this direction
okay finally came the societal marketing now marketing also had it is own flaws, so what
are the flaws that we did not taken into account the societal part what kind of damage or we
doing to the society the nature at large are we doing it in a sustainable manner so these are
things been discussed what if we are exploiting nature to useful as extent and tomorrow there is
nothing left for a next generation, so societal marketing talks about how to include all these
things right and move in a positive manner okay finally comes the marketing strategy.
It says that it consists of a selecting a segment of the market so you have to understand
what is the segment, now look at this board.
This suppose this is my board let say or this
is let say my market okay, now the point is this whole market I cannot you know get it to
this whole market so what I do will I will only cater to this may be this piece of the market or
maybe this piece okay, or let say this piece or maybe B and C together or A and B together or it
could be anything like that right, so segmenting the market becomes easier because you can divert
your resources in a much better manner okay.
In a more effective way okay so and
once you have that you know you see, now if you have design the market if you have
segmented the market properly now then you do not have to put in your resources suppose
this is the market you are going to then you do not need put your resources for A and
C so B is the only market you are doing and to do that you can design your product you can
design your price right, you can design your promotion you can design your distribution.
According to the needs of B okay so now look at this so how does the successful marketing go it
starts with the market analysis so you analyse the market right look at your competitors
your consumers your customers basically then accordingly you move ahead to create
your to launch your plan and that creates an ex-successful marketing strategy all together,
okay. now to practice marketing as I said.
But we have seen in this world that means several
cases where companies have come out with brilliant ideas organizations have come as brilliant
strategies but they have met with the disaster, they have failed miserably and sometimes not
so brilliant ideas have done wonderfully well, so let us look at a few things so what happens,
what is the whole process behind it okay, so when you see this if you look at this line
many decisions require additional information and marketing research is needed in
order to supply that information.
So that means you require information
to know okay, how can one do better in a particular market or one can do better for a
particular kind of customers right. For example, let us take the Harley-Davidson case okay, very
famous this company was had started you know the profits where coming down later was not doing well
but then the company thought what to do, how could they involve so they started the peer to peer
markets, marketing techniques they wanted they a make club like a dimension club, Harley-Davidson
club and slowly they started promoting in there and it worked wonderfully well for them, right.
So one has to understand what is that information that is we are missing or we needed from the
market and that is where we research comes because research after all does nothing but it
helps you to search an information, research searching again and again and again till you
get into the right information, right, okay.
So these are some classic cases I have brought it
for your benefit so you can enjoy and also learn at the same time if you look at the first one.
It is a very, very powerful, very important case where because for wrong interpretation of the
market and the consumers coco cola burned its fingers, what happened here coco cola came of
with the concept of the new cola they thought that since taste was not a very important
feature they could come up with something new for the consumers, but it was a grave great
mistake because the people of US had a connection with the brand coco cola with the culture of coco
cola, they reacted very badly and coco cola had to come back again with the new promotion
saying the old cola is back again, okay.
So sometimes things are connected with your
culture, your tradition and you do not want to give it away so easily right. This was
another case where McDonalds thought the burgers were being very famous so they thought
if my burgers are famous for with the children’s it would also be famous with the adults because
you know it happens that parents also do consumer part of the burger with the child, right.
So they thought that and they launched a premium priced burger right, product of McDonalds which
was coming up. But the adults did not like it, they were not ready to pay higher price, they
dislike the product they were treat, they thought they were been treated like a child that is the
discouraged it and in the whole way coco cola lost 100 million dollars in the year 1996. Yoghurt
shampoo was another case of Procter & Gamble one of the most well researched well most popular
company in the world you can say easily.
Yoghurt shampoo when it came it also made
a mistake the mistake was that they did not research well to understand what do people like
in a shampoo, they thought that going back to your nature and natural products would be a good
way of increasing your market share. But to your dismay what happened is people react, some people
even consumed thinking it is yoghurt they consumed the shampoo and they were hospitalized it gave
a very bad remark and this product failed.
Another product 3D television who would think
that 3D television would be ever a failure, similarly Vizio Company established in
the 2000 in early 2000 they never thought, they thought a 3D television would be a popular
thing but it failed what happened? The reason was the head again not researched what they had
not researched? They had not researched that the number of the 3d movie is being made was very few
and people where not ready to where those glasses most of the time so why you would anybody watch a
3d television right and lastly this is apple.
I deliberately brought in apple here because we
all talk about apple apple apple because apple a doctor keeps the doctor away you know apple
you take a doctor away there is a statement and the same side apple as a company is the most
researched company and the most successful company in the world we say and put in terms of market
capitalization. So when apple came with the Lisa project the project Lisa they try to address it
to the B2B consumer but they did not realize one thing that the B2B consumer for that particular
category was very price sensitive consumer.
And the Lisa project again failed so why I am
saying this is because such great companies also can make great mistakes and get in to huge
losses right, so because of it not a good proper you know research either research or research
design you have not made your research well so you could land up in to trouble, so let us be
very careful this is the successful case. Now you tube when people you know can see the founders.
The founders Chad Hurley, Steve Chen, and Jawad Karim they thought what is there to you know how
to find out a way so that they could give it to the public without any bugs without any problem
it could you know show the videos of you know it is very popular shows and all, they saw that
sharing was a at that time was not very reliable thing it was unreliable and most sites failed to
provide dedicated video, so what happen? They saw it an opportunity, this research help them to
find an opportunity in the market right.
And what came up was you tube which was bought
by Google for 1.65billon so who could think that such a small idea could become such a large
organization and such a large profitable venture okay. Similarly there are so many other
examples like the case of Instagram.
I have put it here you can see that later on
and I also put the case of nano, nano is the very classic Indian case I do not want to get in
to the debate of whether it was successful or not but we can easily say that nano was a classic case
of new product being develop for a new range of consumer right. So how it happen? Ratan Tata finds
that one day family was traveling on a scooter.
With four people and it was very uncomfortable
so he decided then and there that he would make a car of 1lakh, so this is how the
nano started right so we need marketing research to make the right decisions to
implement marketing practice the concept.
And make the right decisions to the set the
right marketing strategy, so how this marketing research is defined now let us see that it says
it is the function that links the customer the consumer and the public through information.
So which we discuss just before and so this information is used to identify and define
he marketing opportunities as you tube did? They found that there was an opportunity
so they exploit it that opportunity and they did well right so this is all the
marketing research definitions says.
Now this is the classic question that comes
when we are into the subject of market research so what does this means let say if I break it
up into two parts let say market and then say again the next one marketing okay so what is this
market research and what is marketing research is there any difference between the two what is the
difference we have to think so market as the name suggest we feel it is like geographical boundary
is a large potential set of buyers and sellers.
Today they may few if I say only geography it
might be wrong because we are playing on the virtual world so okay so marketing research market
research talks about specific group in a specific geographical area but that might you can extend it
to the virtual world which is much bigger okay.
Marketing research what the purpose of market on
the other side the marketing research let see it helps to link the consumer to the marketer
by providing information that can be used on making marketing decisions for example what
is the right price what is the right product should be distributed through this channel or
should we distribute some other channel.
What is the right promotional technique should we
promoted it on TV should we add it on the cable should we add it on the let us say internet should
we give it to some other kind of a you can let say sponsors a cricket match for example anything
right so how do you do it the basically the four P’s of marketing that we talk about and it is
connected to this four P’s of marketing right.
Mostly so let see this what is the uses of
marketing research identifying the marketing opportunities and problems as I said again let us
go back to examples generate refine and evaluate potential marketing actions right so what is
the right marketing action to be taken monitor the marketing performance checking that we are
able to achieve our objectives or not is very important improve it as a process altogether.
Now this is the case of twitter as an example which you like is twitter wanted to launch that
product right but initially they have found they were computing the one of the greatest players in
the market Apple so the third podcast which was apple had launched with support for iTunes would
obviously not do well because they were computing they were small player and they are computing
directly again because they joined Apple right.
So the third they conclude that they are no real
chance of computing against apple so what they did was they did a survey to find out they
realized after the survey that the platform they had build the tremendous scalability and
potential right suppose that they double down on the simplicity and just made a portal
were people could share what they were up to then it will be wonderful right.
After researching they found new venture twitter now which would provide a basic
feed of information with a focus on news and celebrity so it seem crazy but they pull
it off initially with the every new idea people start rising and the think it will not work
but they done the research they saw there was a gap in the market which was existing
and they could take advantage of it right.
Classification of marketing research, so basically
we will classify into the problem identification research and problem solving research, identifying
the problem is itself a successful thing, for example market potential, what is my
potential, am I not working to my potential, can I do something more? What is my market
share? What is the image in the market? I will tell this case of you Parle. When Parle changes it
packaging, just to make it more masculine people initially felt that it is okay to have a Parle
but when the color of the packaging changed.
People started thinking that this is something
like more vigour the more energy into the Parle and it is really a fantastic product. So there was
no change in the product but only in the packaging right, so your image also changes the way you
project yourself, so what is the image that is acceptable in the market and market wants it is
very important, so the characteristics of the market forecasting and trends in the market.
So what is the present trend? Once upon time the fashion trend if you see change every moment,
every 5 years, 10 years there is the change in the fashion again you go back to the old times
and all it so happens. So understanding and the forecasting, for example there is a very classic
case way of you know sometimes happens, I tell in my classroom also. That if you’re forecasting
is wrong, if you go wrong go in forecasting, if you predict you are forecast well.
You can predict your market well there is a enormous loss that a company can make because
the entire chain is getting effected. Let say your, if it does not sell well right then
automatically there is a pile up of inventory.
This entirely affects the operation and production
side of the company right. So and obviously when all these gets effected the profitability does
not remain the same, so profits go down. I think if you can see the profits will go down.
Similarly problem solving research talks about examples like segmentation, which segment, there
is a very nice example which I will tell you.
How to segment the market? How companies for
example Godrej hair dye understood that there was a market beside the human beings right. In
Maharashtra when they were selling their dyes, they thought and surprised to see why the sales
are going up in Maharashtra where states of hair dye had no clue, but they were surprised that this
was been used for coloring the buffaloes and you can understand how much the buffaloes consumes.
So these are something like there was a important market that was untapped, so how to what products
to make what pricing, I can give you the dozen of example of this, for distribution the famous
Tata Ace chota hathi comes to my mind. In the violence of the Lucknow if you have to take
your truck you cannot take it is so difficult, so Tata came up with this different concept
chota hathi which is a Tata Ace and this vehicle manure could you know move into the any
lane of any place in India because India being very congested place so and this product that is
the reason became extremely successful right.
So as I said these are the problem
identification in problem solving research so which side equally they both important.
Okay I think we have gone through this for example the test marketing for example I remember
the time when nestle was doing its test marketing for the maggi right and when I was in school
obviously right so when they doing the test marketing they were trying to influence they were
trying to see whether the market would be readily accepting the products are not sometimes if you
do not do it you are surprised because the market rejects your products because the market rejects
your products right very dangerous okay so all this you can see right product modification
package test and all very important okay.
Similarly the pricing policies what is the
pricing policy if you underperform if you under price the product you are losing valuable
money if you over price you will miss out on the customers right so you will miss out on the
large number of potential customers who could have purchased your product but now they are
not but now they are not there with you right so that is also very dangerous elasticity of
price is extremely important in the market because again that happens consumers in some
cases depends on the type of product obviously in some products they are very sensitive
in some product they are less sensitive.
So if you are in a sensitive product the firm is
working in sensitive product and they play with the price it could be either very positive or it
could be negative one can be very careful so all these needs research all these need data all these
needs to be you know one to see very detailed but any research will only happen when you are very
clear what is your objective right what is your objective and how to move further into that
right okay I think what I can do I this will be my possibly like last slide of today and then
we will may be carried on to that class okay.
So if you can see this is a whole in a
holistic way I have tried to show you this is marketing research and this is the factors
that affect uncontrollable factors that affect the marketing research for example you economic
condition the demonetization happened recently and that affected many companies for example
the Bajaj says there is there were heavily affected because of demonetization people did
not have money right okay technology laws and regulations political factors controllable
prices variables are your because it is hands of the company right they can do a good research
and find out what is the optimum value for it.
The groups customer groups are who are involved
other consumers employees shareholders suppliers and all this marketing managers have to look
into the segmentation the target market the programs performs and control so how do you at
the end you have to monitor your performance and to have a control over it right okay thank you so
much thanks for the day we will meet in the next class of marketing research analysis thank you so
much.
