Institute: University School of Business

Department: AIT-MBA
Subject: Marketing Research and Analytics
Faculty Name : Nancy Jyani
(Assistant Professor)
Email: [email protected]

Unit 1:Market Research and its Process

LECTURE 1:Business Data and its collection

DISCOVER . LEARN . EMPOWER

What is Business Data?
Definition of business data: Business data refers to the information collected
and used within the context of business operations. It encompasses various
types of data that organizations gather and analyze to gain insights and
make informed decisions.
Primary Data Collection
Definition of primary data: Primary data refers to data that is collected firsthand for a specific purpose. It involves
gathering fresh and original information directly from the source, rather than relying on pre-existing data.

Methods of collecting primary data:

a. Surveys and questionnaires: This method involves designing and distributing surveys or questionnaires to a
targeted group of individuals. Through this approach, organizations can gather opinions, feedback, and
preferences directly from respondents.

b. Interviews and focus groups: Interviews involve one-on-one conversations with individuals to gather detailed
information and insights. Focus groups, on the other hand, bring together a small group of individuals to
engage in a guided discussion on a specific topic, encouraging interaction and generating collective insights.

c. Observations and experiments: Observations involve systematically watching and recording behaviors, actions,
and events. Experiments are conducted to manipulate variables and measure their impact on the outcome,
enabling organizations to gather data under controlled conditions.
Secondary Data Collection
Definition of secondary data: Secondary data refers to data that has been previously
collected by someone else for a different purpose but can be used for analysis and
decision-making by another organization. It involves utilizing existing data rather than
gathering new data.
Sources of secondary data: The slide mentions two main sources of secondary data:
a. Internal sources: These include company records and databases that contain valuable
data generated and stored within the organization. Examples may include sales
records, customer databases, and internal reports.
b. External sources: External sources encompass data collected by external entities or
organizations. Examples mentioned in the slide are government reports, industry
publications, and research studies. These sources provide data that is relevant to the
industry, market trends, and socioeconomic factors.
Quantitative Data Collection
Definition of quantitative data: Quantitative data refers to numerical data that can be
measured, counted, or statistically analyzed. It focuses on objective measurements and
quantifiable variables.
Examples of quantitative data collection methods:
a. Sales transactions and purchase records: Organizations collect data on customer
purchases and transaction details, enabling analysis of sales patterns, revenue, and
customer behavior.
b. Website analytics and clickstream data: These methods involve tracking and analyzing user
interactions on websites, including page views, clicks, time spent on pages, and
conversion rates.
c. Social media metrics: By collecting and analyzing social media data, organizations can gain
insights into audience engagement, reach, sentiment analysis, and performance metrics
Qualitative Data Collection
Definition of qualitative data: Qualitative data refers to non-numerical data that is descriptive and
subjective in nature. It focuses on capturing rich and detailed information about people's
experiences, opinions, and behaviors.
Examples of qualitative data collection methods: The slide presents examples of methods
commonly used to collect qualitative data:
a. In-depth interviews: These interviews involve open-ended questions and allow participants to
share detailed information and insights based on their personal experiences and
perspectives.
b. Focus groups: Focus groups bring together a small group of individuals to engage in a guided
discussion on a specific topic, encouraging interaction and generating collective insights.
c. Ethnographic research: This method involves observing and immersing researchers in the
natural environment of the subjects to gain a deep understanding of their behaviors, cultures,
and social dynamics.
Online Data Collection
Overview of data collection in the digital age: Sources of online data: The slide
highlights three main sources of online data:
a. Website analytics: Organizations can collect data about website visitors, their
behavior, navigation patterns, and other relevant metrics using website
analytics tools.
b. Social media monitoring: This involves collecting and analyzing data from
social media platforms to understand audience sentiment, engagement, and
trends.
c. Online surveys and feedback forms: Online surveys and feedback forms allow
organizations to collect data directly from online users, gathering their
opinions, feedback, and preferences.
Point-of-Sale Data Collection
Definition and significance of point-of-sale data: Point-of-sale data refers to the information
captured at the moment of purchase or transaction. It includes details such as items
purchased, quantities, prices, and payment methods. POS data is valuable as it provides
insights into customer behavior, popular products, and sales trends.
Collection methods and technologies: The slide mentions three common methods and
technologies used for point-of-sale data collection:
a. Electronic cash registers: Electronic cash registers are equipped with features that record
transaction details, such as itemized purchases, prices, and payment information.
b. Barcode scanners: Barcode scanners are used to quickly and accurately capture product
information at the point of sale by scanning barcodes on products.
c. Mobile payment systems: With the rise of mobile payments, data can be collected through
mobile payment platforms that record transaction details digitally.
Customer Relationship Management (CRM) Data
Collection
Importance of CRM in collecting customer data: The slide emphasizes that CRM systems play a
crucial role in organizing and managing customer data. By centralizing customer information,
organizations can track interactions, personalize experiences, and better understand their
customers' needs and preferences.
Types of customer data collected: The slide identifies three types of customer data commonly
collected through CRM systems:
a. Contact information: This includes details such as names, addresses, phone numbers, and
email addresses, enabling organizations to maintain communication with their customers.
b. Purchase history: Recording customer purchase history allows organizations to understand
individual buying patterns, preferences, and product interests.
c. Preferences and behaviors: CRM systems can store data on customer preferences, such as
preferred products, brands, communication channels, and specific behaviors, helping
organizations tailor their offerings and marketing strategies.
Challenges in Data Collection
Privacy and data protection: Data collection involves handling sensitive information,
and organizations must address privacy concerns and comply with data
protection regulations to ensure the confidentiality and security of collected data.
Data quality and accuracy: Ensuring the quality and accuracy of collected data is
crucial for reliable analysis and decision-making. Challenges may arise from
data entry errors, incomplete or inconsistent data, or biased data collection
methods.
Data integration and compatibility: Organizations often need to integrate data from
multiple sources to gain a comprehensive view. However, different data formats,
structures, and systems can pose challenges in integrating and analyzing data
effectively.
Data Collection Best Practices
Clearly define objectives and research questions: Before collecting data, it is essential to
have a clear understanding of the objectives and research questions. This helps focus
data collection efforts and ensures relevance and purpose.
Use a combination of data collection methods: Employing multiple data collection
methods, such as surveys, interviews, and observations, can provide a more
comprehensive and well-rounded perspective, enhancing the validity of the findings.
Regularly clean and validate data: Cleaning and validating data involve removing errors,
inconsistencies, and duplicate entries. Regular data cleaning ensures data accuracy
and maintains data quality over time.
Ensure compliance with privacy regulations: Organizations must adhere to privacy
regulations and ethical guidelines to protect the privacy and confidentiality of collected
data. Compliance helps maintain trust with customers and stakeholders.
Introduction to Marketing Research
Definition of marketing research: Marketing research is the systematic
gathering, recording, and analysis of data about customers, competitors,
and market trends to aid in decision-making and the formulation of
effective marketing strategies.
Importance of marketing research in decision-making: Marketing research
provides valuable insights and information to help businesses
understand their target market, make informed decisions, and create
effective marketing campaigns.
Key Objectives of Marketing Research
- Understanding customer needs and preferences: Marketing research helps businesses gain a
deep understanding of their target customers, their preferences, and their buying behaviors.
- Identifying market opportunities and trends: By conducting research, businesses can uncover
emerging market trends, identify untapped market segments, and spot new opportunities for
growth.
- Assessing market potential and demand: Marketing research helps assess the potential size of
a market, estimate market demand, and evaluate market saturation levels.
- Evaluating the effectiveness of marketing strategies: Through research, businesses can
evaluate the impact and effectiveness of their marketing efforts, campaigns, and strategies.
- Making informed business decisions: Marketing research provides data and insights that aid in
making informed and data-driven business decisions, minimizing risks and uncertainties.
Types of Marketing Research: Exploratory research
- Purpose and benefits: Exploratory research aims to explore a problem
or topic, gather initial insights, and generate hypotheses for further
investigation. It helps in gaining a better understanding of complex or
poorly defined problems.
- Techniques used: Focus groups, in-depth interviews, observations, and
case studies are commonly used in exploratory research.
Types of Marketing Research: Descriptive research
- Purpose and benefits: Descriptive research aims to describe and analyze
the characteristics, behaviors, and patterns of a target market. It
provides a snapshot of the market, allowing businesses to gain insights
into customer demographics, preferences, and purchasing behaviors.
- Techniques used: Surveys, questionnaires, secondary data analysis,
and statistical analysis are commonly used in descriptive research.
Types of Marketing Research: Causal research
- Purpose and benefits: Causal research investigates cause-and-effect
relationships between variables. It helps businesses understand how
changes in one variable impact another, allowing them to make
predictions and formulate effective marketing strategies.
- Techniques used: Experiments, field tests, and statistical analysis are
commonly used in causal research.
The Marketing Research Process
- Step 1: Problem identification and research objectives:
- Identifying research problems and questions: Clearly defining the problem or area of interest that requires investigation.
- Formulating research objectives and hypotheses: Setting specific and measurable goals for the research to address the identified
problem.
- Step 2: Research design and methodology:
- Choosing appropriate research design: Selecting the most suitable research approach (exploratory, descriptive, or causal) based on the
research objectives and available resources.
- Selecting data collection methods and tools: Determining the most appropriate methods for collecting primary or secondary data, such as
surveys, interviews, observations, or secondary data analysis.
- Step 3: Data collection:
- Primary data collection methods: Gathering data directly from the target audience through surveys, interviews, observations, or
experiments.
- Secondary data collection methods: Collecting existing data from various sources, such as industry reports, government publications, or
internal company records.
- Step 4: Data analysis and interpretation:
- Data cleaning and validation: Reviewing and verifying the collected data to ensure accuracy and consistency.
- Statistical analysis techniques: Applying appropriate statistical tools and methods to analyze the data and draw meaningful conclusions.
- Step 5: Report preparation and presentation:
- Organizing and summarizing research findings: Presenting the research results in a clear and concise manner, highlighting key insights
and recommendations.
- Communicating research results effectively: Using visual aids, charts, and graphs to convey the information and make it easily
understandable to stakeholders.
Ethical Considerations in Marketing Research
- Importance of ethical conduct in marketing research: Upholding ethical
standards is crucial to maintain the integrity and credibility of marketing
research.
- Common ethical issues and challenges: Privacy and confidentiality,
informed consent, data protection, and avoiding bias or manipulation of
research findings.
- Ethical guidelines and codes of conduct: Familiarizing oneself with
industry standards and guidelines set by professional bodies (e.g.,
Market Research Society, American Marketing Association) to ensure
ethical research practices.
The Significance of Marketing Research in
Management
- Strategic decision-making based on reliable data and insights: Marketing research provides managers
with accurate and relevant information to make informed decisions and develop effective strategies.
- Assessing market potential and identifying growth opportunities: Research helps businesses
understand market dynamics, identify new market segments, and uncover untapped opportunities for
growth and expansion.
- Mitigating risks and minimizing uncertainties in the marketplace: By conducting research, businesses
can assess market trends, evaluate competitive forces, and minimize potential risks and
uncertainties.
- Enhancing customer satisfaction and loyalty: Research allows businesses to gain insights into
customer preferences, expectations, and satisfaction levels, enabling them to deliver products and
services that meet customer needs.
- Gaining a competitive advantage in the industry: Effective marketing research helps businesses gain a
deeper understanding of their customers, competitors, and market trends, enabling them to
differentiate themselves and develop a competitive edge.
Phases/ evolution of marketing research
Early Beginnings
In the early 20th century, businesses began recognizing the importance of understanding consumer preferences and market
dynamics. Market surveys and consumer panels emerged as initial research methods to gather information about
consumer needs, preferences, and purchasing behavior. This early phase of marketing research laid the foundation for
future advancements.

Post-World War II Development

Following World War II, the business landscape underwent significant changes. Increased competition and market
complexities led to the need for more systematic and scientific approaches to understanding consumer behavior.
Marketing research became an essential tool for businesses to gain insights into customer needs, evaluate market trends,
and make informed decisions.

Quantitative Research Era

During the 1960s and 1970s, there was a shift towards quantitative research methods in marketing. This era was
characterized by the increased use of statistical techniques and data analysis. Researchers began applying statistical
tools to analyze large datasets and draw meaningful conclusions. Quantitative research allowed for more precise
measurement and prediction of consumer behavior.
Phases/ evolution of marketing research (Cont.)
Technological Advancements
The evolution of technology has significantly impacted marketing research. The introduction of computer-based tools and software revolutionized
data collection, analysis, and reporting processes. Researchers can now collect data more efficiently, analyze it using advanced statistical
techniques, and present findings using sophisticated visualization tools. Technology has also facilitated online surveys, mobile research, and
big data analytics.

Rise of Market Segmentation

Market segmentation became a prominent concept in marketing research. Instead of treating the market as a homogeneous entity, businesses
began segmenting it into distinct groups based on demographic, psychographic, and behavioral characteristics. Market segmentation
allowed companies to tailor their marketing strategies and offerings to specific target segments, resulting in more effective and targeted
marketing campaigns.

Shift to Relationship Marketing

As businesses recognized the value of customer relationships, marketing research evolved to focus on relationship marketing. This approach
emphasizes building long-term relationships with customers rather than focusing solely on individual transactions. Marketing research played
a crucial role in assessing customer satisfaction, measuring brand loyalty, and understanding the drivers of customer loyalty and retention.

Integration of Qualitative Research

Marketing research started integrating qualitative research methods alongside quantitative approaches. Qualitative research techniques, such
as in-depth interviews, focus groups, and observational studies, allowed researchers to gain deeper insights into consumer motivations,
attitudes, and behaviors. The integration of qualitative and quantitative research provided a comprehensive understanding of consumer
behavior and market dynamics.
Phases/ evolution of marketing research (Cont.)
Globalization and Cross-Cultural Research
Globalization opened up new markets and created diverse consumer segments. To understand the cultural nuances and
preferences of different markets, marketing research expanded its focus to cross-cultural research. By conducting cross-
cultural studies, businesses could adapt their marketing strategies to suit specific cultural contexts, ensuring relevance and
effectiveness in different markets.

The Digital Age

The digital age brought about a paradigm shift in marketing research. Online surveys, social media listening, and web analytics
emerged as powerful tools for data collection and analysis. The digital environment provided vast amounts of data, enabling
businesses to gather real-time insights into consumer behavior and market trends. Digital platforms also facilitated targeted
marketing campaigns and personalized customer experiences.

Artificial Intelligence and Automation

Artificial intelligence (AI) and automation have transformed marketing research processes. AI algorithms can analyze vast
datasets quickly, identify patterns, and generate

insights with minimal human intervention. Automation tools streamline data collection, analysis, and reporting processes,
making marketing research more efficient and cost-effective. AI-driven technologies, such as chatbots and predictive