TYPES OF MARKETING RESEARCH IN MARKETING KNOWLEDGE
There may be different types of marketing research depending on the objective that the research is designed to achieve and the sources of data which are to be used.
Marketing research can be identified as :
1. Exploratory
2. Descriptive,
3. Causal and
4. Predictive
1. Exploratory research : Exploratory research gives valuable insight, generates ideas and hypotheses rather than measuring or testing them.
A marketing researcher uses this type of research when very little is known about the problem being examined. The major benefit is that it is less expensive and less time-consuming. For example, it a researcher is interested in finding out "Which features/factors are vital in a purchase decision ?"
2. Descriptive research : Descriptive research is concerned with measuring and estimating the frequencies with which things occur or the degree of correlation or association between various variables.
3. Causal research : Causal research is basically concerned with establishing cause and effect relationship and an attempt to explain why things happen. For example, to what extent the price elasticity of demand or the degree to which advertising campaigns have affected the sales may be explained by causal research.
4. Predictive research : The main purpose of predictive research is to arrive at a forecast or prediction or some measurement of interest of the researcher.
MARKET DEMAND
Market demand means the demand of all the consumers in the market for a commodity at a particular price. Market demand schedule shows the total demand of all the consumers in the market at various prices.
MARKET FORECAST
Market forecast refers to the estimates of future sales of a company's products in the market.
METHODS OF SALES FORECASTING
I. Survey of buyers' intentions : The most direct method of estimating demand in the short run is to ask customers what they are planning to buy for the forthcoming time period-usually a year.
. A basic limitation of this method is that it is passive and "does not expose and measure the variables under management's control".
Delphi Method: A variant of opinion poll and survey method is Delphi method. It consists of an attempt to arrive at a consensus in an uncertain area by questioning a group of experts repeatedly until the responses appear to converge along a single line or the issues causing disagreement are clearly defined.
II. Collective opinion: Under this method, also called sales-force polling, salesmen are required to estimate expected sales in their respective territories and sections.
III. Analysis of time series and trend projections : A firm, which has been in existence for some time, will have accumulated considerable data of sales pertaining to different time period. Such data when arranged chronologically yield 'time series'. The time series relating to sales represent the past pattern of effective demand for a particular product. Such data can be presented either in a tabular form or graphically for further analysis.
IV, Use of economic indicators:
(i) Construction contracts sanctioned for the demand of building materials, say, cement;
(ii) personal income for the demand of consumer goods;
(iii) Agricultural income for the demand of agricultural inputs, implements, fertilizers, etc. ; and
(iv) Automobile registration for the demand of car accessories, petrel, etc.
