Limitations of marketing research

Correctness of data of data comes the first limitation of marketing research. The persons who interviewed for collecting data need not give the accurate data. Sometime people mislead the data seeker in a wrong way.   The interpretation of result is done on the basis of data collected. So the result depends on the correctness of data. This sometimes may vary and bias of investigator also reflects the result. Expenditure incurred for a marketing research is high. The firm has to make a lot of expense for research. Appointing persons or giving research works to party will be done only be large scale firm. Small scale firm can not only afford this. Special budget should there for research campaign.

Based on samples is another limitation. Most of the research is done on the basis of samples taken from a locality or group of people. The sample may not true or cannot generalize with the result.  The data received from the samples from a population may not give an accurate decision. A market research program always requires trained professional to guide each stage. Otherwise it leads to failure. The research team members have to be trained according to the requirement of the research program. This also takes cost and time.

Types of research

Continuous research

Continuous research is focused for the purposes of studying the continuously the market situations such as demand and supply. Monthly or quarterly demand felt in the market has to study and the fluctuations have to be analyzed. This stands as the basic requirement for any firm for its existence. Also find out the supply of goods or materials for the effective sales to be ensured.

Adhoc research

Adhoc research is a special purpose research. For e.g. a research in which the firm has to check the viability or feasibility proposal. A team of experts will study the particular area where the business activities can be done or not. This is temporary in nature as soon as the study finishes the team will be dispersed.

Exploratory research and Casual research

It is the research focus to explain the market or a particular situation. For e.g. the firm decides to conduct a research on the decline of sales is a exploratory research to identify the problem. Casual research is a research based on the cause and effect relationship. For e.g. a research to find out the effect of reducing or increase the price.

Scope of marketing research

Marketing research is a wide area which can be used for various purposes. Marketing research takes all the activities involved in marketing. It starts right from the generation of an idea of a product to till the consumers feedback comes back. The scope of marketing research is:

  Product research and Sales research

Any organization survives because its uniqueness in the product. The uniqueness or quality is being researched. The product research before the launch or after the product launch. It is necessary to find out the acceptance and satisfaction among the consumers about the product design, features, benefits, if there is any modifications etc. Sales research includes the details of sales. This includes the sales performance of the salespeople, sales methods implemented, finding new sales strategies etc. Once the sales research has been done, it will help to understand which the weaker points in sales are. Training and other sales promotional programs can be conducted out of a sales research.

Market research and Advertisement research

Market is the major part of the study for any business. Market pulses such as demand supply should be clearly researched. Each segmentation of a market should be researched. There will be different segmentation based on population, geography, psychology etc. which have to be covered in detail. Advertisement is one of the important facts that lead to sales. Right from the preparation and budget to the analyses of efficiency of advertisement, the market research is done. This includes the study of message, media, result, viewer’s response etc. An advertisement campaign is done after all tests and research made as it involves high risk of rejection and monitory loss.

   Pricing research and Distribution research

 It is the process all about to check how the pricing methods are working among the consumers has certain price exporters. If the price is going beyond or below the expectation, it will reflect on the sales. This has to be researched before and after fixing the price. A firm started pricing with penetration pricing has to sometimes change to skimming price when there is an innovative product comes. Then there will several factors to be researched. Distribution involves the channel through which the product and services reach to the consumer. This is possible through retails, wholesales; brokers etc. there will be lots of problems occurring related to storage, transportation, commission etc. This should be researched to maintain the distribution system efficiently.

Steps in Marketing Research

        Marketing research provides information to solve a particular problem. Also marketing research helps to find the solution and prevent uncertainties in the future. The procedure for marketing research varies from firm to firm. Every activities in the marketing is researched so as to check the performance and to ensure it is going well. The stages in marketing research are:

            The first stage of marketing research is the identification of problem. The researcher has to find the problem.  Suppose FMCG firm plans to make a research on the influence of food product on the growth of children in a particular region. This is the problem or topic they have to research on. He has to first set the above topic as the objective of the study. Also he has to put if there is any another objectives coming under that. Then the second stage starts that is planning the research technique. After dividing the topic or finding the problem the researcher has to decide the type of information and technique of recollecting information about the problem.

           

After deciding the technique of collecting the data and information, the researcher starts collecting data. He can collect the data using mainly through survey method and observation method. Survey method is the method using questions and schedules one can get the data regarding the problem from different people. Observation is the method through the observation from the people who, the research problem is targeting the researcher can find out the data.

There after the next step comes with analyses of data. The collected data should be synchronized and tabled for analysis. Here the data will be tabulated and classified according to the convenience of researcher. Then interpretation stage comes. Based on the analysis of data the researcher reaches a conclusion and he can make a meaningful interpretation. This is done with the help of statistical techniques. Nowadays software is used to interpret data. E.g. SPSS. The final stage of marketing research is the report preparation and presentation. He has to submit to the higher authority to take necessary division based on the interpretation about the problem. 

Components of marketing information system

                             Internal information system

Internal information system is the information available inside the organization. Ever organization keeps a record of inventory, sales, cost, cash details, personal details, etc. These are collected from inside the organization. The organization itself becomes the internal information system. As the marketing is the crucial element of any business all another functions are interrelated to marketing. All the information occurring in another department has to be coordinated. The top level management has certain principles or practices that have to follow in its marketing. The strategies and policies are discussed together by marketing wing and top level management to finalize. The personal details for the marketing efforts are to be clearly specified also. The quota

Of sales, different activities such as pricing, promotion, enhancing the product features, distribution etc. For these the information should clearly communicated through a n internal information system.

                Marketing intelligence system

This is the system which collects the information from the outside world of the organization. Every organization survives with the updated information from the outside world. The data relating to demand, supply market fluctuations, inflation, deflation etc. have to be studied. Understanding the demand is made through a good demand forecasting program. It is very important to make the demand forecasting as it involves decision how much to produce products in advance and to plan the future actions. Understanding the economic fluctuations is a matter when the cost of production and price is determined.

            Marketing research

Marketing research is the system which gives information to solve particular problem. This makes a clear collection and information to take decision. A research program should be conducted before and after every program comments. Because any activities starting from the generation of an idea of product to customer satisfaction level the research continues. The various marketing research are research about price, product, distribution, advertisement etc.

Selling process/sales cycle

Making the sale successful is an interesting task for the sales people. Because salesman has to go through different stages to make sales a success. Before going to discuss the stages of selling, the modern technique of selling AIDAS formula is an important under discussion which is used in the process of selling.

A stands for attention

I stand for interest

D stands for desire

A stands for action

S stands for satisfaction

Stages of selling process

Prospecting is the first stage of selling. This is the process of searching for the potential buyer. A prospect is the probable buyer. In this stage the salesman has to find out who are the people interested for buying the product. The buyers’ details and address should be collected from various sources such as retailers, websites, e-mails, phone directories etc. Preparing comes the second stage. In this stage the salesman prepares himself to face the customers. He has to know whom he is going to approach his behaviors, likes, dislikes and psychology. Without knowing this the salesman cannot face the questions of customers.

Approaching is the third stage where the customers and salesman come face to face contact. Here starts the technique of selling. Factors in AIDAS i.e. attention and interest factor is made in this stage. The salesman should make an attempt to get the attention and interest over a product. Presentation process starts soon after that. Once an attention and interest made on product, how it can be converted into desire is happening in this stage. The salesman has to explain the features, qualities, utility etc. A mobile show room sales man may explain the features of product such as the pixel of camera, screen size, operating system.

Overcome the objectives is another stage. Most challenge in a selling a product is to overcome the objectives from the consumer. The consumer has to be fully clarified or satisfied from the answer of the salesman. So the salesman can perform in the stage with the updated information about the product. The prospects may compare the products with competitors. Salesman should able to convince the features over and above the competitors. Then it leads to last stage of closing the sales. If the salesman able to do the above steps it leads a successful sale. Sometimes the customer    may postpone his purchase in the future; salesman has to wait for that.

Kinds of media in advertisement

I bought a Lux soap, which comes from Hindustan Unilever Ltd, after seeing lots of advertisement in different places and way. Have you ever differentiate how the advertisements reached to us. This is explained as types of media in advertisement. They are indoor advertisement and Outdoor advertisement.

 Indoor advertisement is the advertisement program which is done through newspaper, radio, TV is known as the indoor advertisement. The advertisement which is directly viewed by the viewer very near especially when one is in home or working within an office. The media through advertisement reached to the indoor are:

Newspaper

Advertisement and news reaches through the newspaper everyday to the consumers. It is consulted as very effective one. A well circulated newspaper having good readership leads getting of high number of people to watch the advertisement. Different types of advertisements are placed in a newspaper so that more viewers are attracted to watch it. Merits of newspaper advertisement are; Newspapers cover a wide area and makes huge demand. Making the demand for a product after watching the advertisement depends on how much the readership the newspaper possesses. Cost of advertisement is less comparing with its coverage to audience. When we compare with other media the reach and effect is high. So that the advertisement cost is less. It leads to making publicity. A newspaper is always meant for public. Public will come to know what is happening around. The advertisement also becomes a part of this public news. Demerits of this advertisement are; Today’s newspaper is tomorrow waste. The news today always forgot when there is news come in the next day. So the period of advertisement is very short. People through newspaper after reading it. More demonstration and explanations are not possible. Newspaper which is written format and also in inflexible in nature. It cannot convince the viewers about the product and services.

Magazine

Magazines are another form of advertisement. This can be weekly, fortnightly, monthly, quarterly etc. The specialty of magazines is, it handles the articles of specialized topics such as magazines for women, men, health, sports, arts etc. So the advertisers can decide the target group of consumers easily. Merits of magazine advertisement are discussed as longer life than newspapers. Normally people keeps magazine for more than newspapers. Because whatever the articles written in it are having rich in content and detailed explanation. Quality of papers and color designs are possible. This also improves the quality of advertisement too.  Demerits of magazine ads are; less circulation compared to newspaper. People interested with special topics of the magazines are read and watched the advertisements. Also not suitable for regional advertising. Magazines are always targeted to a massive audience with special interests. This normally is not regionally segmented.

Radio

Radio is the quickest media of broadcasting advertisements than the newspapers and magazines. Sound reaches to the audience than the newspaper’s impact. Radio has an impact since its invention and even now. Different FM stations are launching with different programs in different region. This brings the possibility of delivering more advertisement opportunities.

Merits of radio ads are; larger coverage with well obsessed audience. People are really eager to listen for certain programs. This makes a good audience to listen the advertisements also. Flexibility of advertisement is the important advantage of radio. The advertisement content can be changed and delivered in a flexible way at any time. Audible advertisement is more effective than written words. Also the advertisement can convince the audience than a written media. Demerits are; this is a costly media compared to another. Because the programs run in the radio are very costlier in nature. This results in advertisements too. Possibility of shifting the radio stations while commercial advertisement runs. Audience has another choice of programs in the time breaks. More the possibility of shifting the channel. So most of advertisements are waste.

Qualities of a good salesman

When we approach a shop to buy a product we notice how people behave to us. Their hospitality is the matter we decide whether we have to stay there or shift to somewhere else. For selling process a salesman should possess some qualities; physically how one looks that is how is presented to consumer. A guy with dressed indecently and behaving poorly definitely drops the sales. How mentally handles the sales? How much confident? Use of presence of mind, enthusiasm. In addition to that there are some another qualities should a salesman possess.

  How much the salesman has knowledge about the product? A mobile shop salesman should clearly know the product he handles. How to use the applicable prices features, merits and demerits etc. The knowledge of product comes from regular observing the updating market and attending the training programs from the manufacturers of the products.  Which firm’s product he sells? This question answers the knowledge of the firm. The salesman should thoroughly study the details of the firm such as the market share, old product list, the other products available etc. Otherwise the customers will shift from the shop. They will be very much interested to know the name and details of the company. Because the future sales and services are very important for the consumers. When the salesman explains about the product, he has to always differentiate the product with competitors. In order to do this, he should have a thorough knowledge about the competitors. When a salesman sells Samsung galaxy, he should know Nokia, Motorola, LG, spices etc. when he know it he can highlight the qualities of galaxy mobile phones.

 How the customs behaves to the salesman? A salesman must have a perfect understanding about the customers who he deals. The psychological behavior of the consumer should be analyzed and according to that the sales is done. He should understand the behavior from a minute expression from the prospect.  How we can sell the product? This talks about the technique of selling. Each consumer is different he has to attention to a product, making an interest, this leads to a drive to buy the product and closing the sales. This technique should be practiced from his experience.

 

Advantages of personal selling

Nowadays lots of business firms avoid intermediates and personal selling efforts. Because they launch websites and sell it through online trading. This method gets lot of advantages. But I would say the cost involved for placing the sales efforts will create to a good amount of sales and lead to a sustainable profit. Advantages of sales personal selling can be explained in two aspects. They are advantages to manufacture and to consumers

Advantages to manufacturing

Increased sales and profit is the first advantage. Manufacturer always looks for the increase in sales and profit. So they push more sales efforts to the sales people. The regional sales manager may fix the quotas of sales for each individual. He has to make it within a stipulated time. Also personal selling ensures quick sales of products from the production house. Manufacturer and their team cannot make sales in a large volume. This process has to be reached out to different people. When there is a quick sale occurs the stock kept in the go down will move fast. The stock in the go down is the dead investment and doesn't generate any income and it is a burden.

Getting information about market is another advantage of personal selling. Salesman knows the pulse of the market. He touches the nervous of the market and tells that the market is weak or strong. He can deliver the accurate information to the manufacturer whether there is a need of modification and producing more goods with price change. Facing competition is another advantage from personal selling. Well maintain sales force with good remuneration and incentives will help to overcome the threat of competition. Sales people will always prefer our products to the customers when there e is a demand.

Advantages to consumers

Personal selling efforts make a connective link to consumers. Salesman becomes the spokesman of the company to the consumer. He declines and solves the problem relating to product. Consumers can not directly go to the company. But the sales people can meet the requirements. The salesman trains the consumers while using product. For a galaxy mobile technology is new, this should be trained by the people. This makes the consumers to choose quality product. Sales people are well aware about the product. They know the merits and demerits. With the explaining based on merits and demerits the customs can buy best one.

Functions or objectives of personnel selling

In festival season, there will be displays in shopping malls of product. When we get attracted we approach that salesman to get the information. He will be very interested to explain about it. Both the salesman and prospect know he won’t purchase the product. But after explaining about the product, there is a great possibility of purchasing the product. That is the power of personal selling. Functions of personal selling are discussed below.

Maximize sales and profit is the first function of personal selling. Sales and profit is the major object for a business concern whatever the effort is taken. How we can improve our sales and profit is always a question market. Personal selling efforts create a sales opportunity than any other way of promotional tool. Because it has a direct contact with the consumers. Also it brings or attracts new customers to the business. A good personal selling will invite even the attraction of the pedestrian. There is lot of people who sells in the street because they can attract customers. The personal selling techniques explain how to retain the customers too. How we can retain our customers? Because only present customers will bring a sustained profit to the organization. They should be treated gently. They have to get satisfaction about the product. Then only they bring other people to the business. Otherwise they will recommend others services.

Capturing market share is another function or objective. Competitors are always catching the sales man to give incentives and other gifts to improve their sales. This should be analyzed and the personal selling efforts should maintain. Otherwise the competitors take market share. Introduction of a new product is yet another function played by personal selling. How can we introduce a product? This is not possible through advertisement. Because people will be confused with the information. But a trained salesman takes this risk and solves easily. He can understand the customer’s wants and needs and introduce the product to them. Also sales people collect information about market. That is how the market is whether dull or active? This can be answered easily by a salesman. He knows the pulse of market and gives the feedback to the firm.

Need /Importance of Marketing Information

Today the modern world talks about two terms. They are innovation and updating. Updated information leads to more innovation but an innovation without updating probably leads to out dating from market. The information is known as the life blood of today’s world. To manage the business lists and uncertain ties we need to update with the information. Marketing success depends on the utilization of given opportunities on correct and timely decision marketing information system is a systematic or scientific collection of information to take the marketing decisions. The need or importance of marketing information system is:

Changing attitudes of people

Today attitude of people towards product and service are changing. Different taste and preference are coming. People search for innovation products and features. This should be handled with the support of updated collection of information. Especially in the tech world, the features of products changes in seconds.  The mobile launched today will tomorrow replace with updated features.

Understanding the economy

Every day there are lots of changes occurring in the economy? The demand and supply is major aspect of understanding the market. This should be studied and used for the forecasting the business activities. Estimation of demand using various techniques such as Delphi, expert opinion, Jury etc. lead a clear view in the requirement of things to be produced during a period.

 Competition

Information received in time will prevent the competitor to take the market share in an economy. The market leaders have to always focus on their competitor even small. Because updated things can capture the major share of market. Certain copy cats also there to monitor the innovation by the top firms. Especially in the tech world high imitations are arriving that of reputed brands.

Complexities of marketing efforts

Today the marketing efforts became more complex and confusing. Each and every stage should be monitored. Without checking the perfection of the activities the marketing activities may go wrong. This function serves the major existence of any organization. Marketing information assists in doing such things.

Factors influencing promotion mix

Promotion is one of the important elements for a business concern.  Because it enables the consumers to get the information about the product and services. So the entrepreneur should decide how to use the promotion mix by looking various factors influencing a promotion mix.

              What is the product? This question answers what is the nature of product.  Fast moving goods like grocery, drugs etc require huge level of advertisement. Whereas industrial goods need personnel selling. Also the question   which is the market? This question answers what kind of market to which the products are targeted. For an industrial market, advertisement creates information, while consumer market promotion creates information and persuading people to buy the products. What is the stage of life cycle of the product is another factor. This is the one of the important question for making promotional budget. Because for an introduction stage, there should be huge expense for promotion. In growth stage, there should be comparatively less promotion. In maturity there should be enough promotion to face competition and maintain market share. During decline there should be less expenditure. This is possible only by reducing the advertisement budget.

     The size of the market becomes crucial for the promotion mix. A market consists of few buyers and sellers need only personnel selling. But for a huge market with high number of buyers and sellers, there should be various kinds of promotional tools to be used. Also the question of how much is the fund available is the most expensive question to begin anything. What is the fund available in the hand determines to select whether there is a huge budget for advertisement or publicity or personnel selling methods. Price of the product is another factor comes under consideration. The price of a product is reduced or increased mainly due to the influence of promotion. Majority of the cost of a product usually comes as part of cost of sales promotion. The pricing strategy sometimes restricts to reduce to lower level. This results in reducing the promotion expenses.

         

Difference between advertisement and personnel selling

We know advertisement and personnel selling are the important elements of promotion mix. These two elements are tied together. Because without advertisement personnel selling is waste and vice versa. But there are lots of differences are observed. They are discussed below.

Method of usage of personal selling and advertisement is the first point talks the difference. Advertisement is the dissemination of information through a paid media. This is an impersonal method. In this method manufacturer do not depend on the persons to make the sales. But personnel selling always depend on the persons to reach the product and services to the consumers. So it is personal method. When comes to the coverage or target audience is another difference. An advertisement is always focused a mass audience and expect huge coverage of reaching information about a product or service. Whereas personnel selling is directed to the individuals and reaches lesser coverage.

Advertisement is considered as less effective and efficient in making sales when compared to personnel selling. Advertisement makes an awareness and attractiveness to the product. Bit personnel selling can make the people more convinced and make the sales easy. Also the type of communication plays a difference over here. Advertisement is regarded as one way communication. Different media are delivering advertisement which is one way communication. This can give information. But there are no opportunities to get clarified about the product. This is facilitated only through personnel selling. Here a sales man make a two way communication and can convey the consumer fully. Flexibility is another matter. Once an advertisement is made, the contents and strategies used cannot be changed. What is fixed should be followed. Every time the same thing should be repeated to the customers. Personnel can be flexible according to customers’ behavior. The sales man can identify and understand the potential people and create an interest to buy. This leads to the closing of sale.

Features of personnel selling

Do you think that an advertisement or publicity leads to the ultimate sale of a product? I will say no, because there should be people in between the customers and manufacturers. These people are those who involved in sales. The success of sale depends on the personal salesmanship. A personnel selling is the conversation or talk with the prospective buyers. Features of personal selling are discussed under.

Personnel selling process is an important element in promotion mix. Other elements are publicity, advertisement and sales promotion. These are ineffective without personnel selling. The investment made for these activities become useless. It is a Personnel interaction as the personnel selling involves the conversation with a prospective buyer. Through this the consumers by way of talking the features, price etc. A sales man represents the firm and talks to the consumers. He may talk about the firm in the context of its reputation, other products, brands etc.

It is the act of understanding the consumer behavior. A sales man directly talks to people and understand what the consumer expect from a product and what kind of change has to be done on the product. In a mobile shop the sales man has to explain the different application and utilities of mobile phones brands such as Nokia, Samsung, and Motorola etc.  While dealing with different customers, the sales man can identify what the consumer expect from Nokia or which reason to shift from Nokia to Samsung. It is also a two way communication. Personnel selling process is a two way communication. Nowadays lot of online websites and shops sell lots of products through internet. But this lacks a two way communication between the consumer and the sales man. When there is a two way communication occurs, the consumer gets clear information about the product and the sales man can clarify the problems faced by the consumer. This results in closing a sale.