INTRODUCTION
The purpose of this section is to briefly discuss what is meant by research brief, proposal, and also the responsibilities of Clients and agents. We shall also discuss research budget and criteria for evaluating marketing research results. Each of the mentioned topics shall be discussed under different sub-sections and relevant examples shall be given in order to give a proper understanding of the salient issues involved.
The main purpose of establishing a company is to make profit (or any other benefit index). Profit can come when a large amount of the company's products and services are sold. Large quantity of products and services can be sold when those products are the types that satisfy the customer's or clientsNeeds or wants. To understand consumer behaviour for products, the marketer should go beyond adjusting the marketing mix arbitrarily without finding out whether such adjustment will meet the customer's needs, or not; hence the need for marketing research.
A brief is required in marketing research for the following reasons:
OLC Manufacturing Company Nig. Ltd is a private Nigeria company, which has been in business for the past five years. The company has just introduced into the market a seasoning condiment (BB) to its MC tomato- paste, which is still doing very fine in the market.
Before the introduction of the product, information was gathered in the food seasoning market in Lagos where largest volume of sales takes place. The test-marketing was successful before the launch and mass production started.
During the initial survey in the market on the competing brands, it was discovered that all the other brands like MM, DD, etc. are brown in colour and packaged in cubes. The company decided to produce white-colour seasoning condiment to arouse interest in consumers and also provide a change. The package is also done in polythene bags for both family sizes and industrial sizes like restaurants and hotels.
In the first year of its operation, there was rapid growth in production. With the success recorded, the desire to extend marketing beyond Lagos became appealing and this led to opening of distribution outlets across Nigeria based on the favourable sales recorded in Lagos State Prior to the expansion in market outlets and production, a market research was carried out in Benin area where the study showed a favourable result of wide acceptability. Sales volume after the national launch was good in the average for some few months after which a sudden decline followed for about eight months, now almost pushing the product out of the market.
The OLC management after critically looking at the issue feels the problem may have to do with the sudden launch nation-wide without caution, and basing decision on Benin and Lagos alone without considering factors outside those areas and the suspicion of a change in product quality.
The purpose of this section is to briefly discuss what is meant by research brief, proposal, and also the responsibilities of Clients and agents. We shall also discuss research budget and criteria for evaluating marketing research results. Each of the mentioned topics shall be discussed under different sub-sections and relevant examples shall be given in order to give a proper understanding of the salient issues involved.
The main purpose of establishing a company is to make profit (or any other benefit index). Profit can come when a large amount of the company's products and services are sold. Large quantity of products and services can be sold when those products are the types that satisfy the customer's or clientsNeeds or wants. To understand consumer behaviour for products, the marketer should go beyond adjusting the marketing mix arbitrarily without finding out whether such adjustment will meet the customer's needs, or not; hence the need for marketing research.
Marketing research has been seen as a means by which the cycle of communication between manufacturer and the consumer or client may be efficiently and effectively achieved and maintained. The major objective of marketing research is to collect data, to monitor the performance of the existing products, to explore ways to improve on the product, and to research the possibility of new products, among others.
In carrying out marketing research it must be decided whether the research shall be in-house or it will be contracted out to an agency. It must be noted, however, that in-house marketing researches are often cheaper than the one contracted out to agency. It is when a marketing research is contracted out that the issue of research brief, research proposal, agency, and research budget come in. Each of these items will be discussed below.
In carrying out marketing research it must be decided whether the research shall be in-house or it will be contracted out to an agency. It must be noted, however, that in-house marketing researches are often cheaper than the one contracted out to agency. It is when a marketing research is contracted out that the issue of research brief, research proposal, agency, and research budget come in. Each of these items will be discussed below.
OBJECTIVES
At the end of this unit, you should be able to:- explain briefly what is required in marketing research
- Explain how often alters the client's perception of the problem and even provide the solution to the problem.
- Explain briefly how the researcher and the client will understand the problem properly.
- Understand the marketing research brief how it elicits response from the research agency, which comes in form of proposal.
Marketing Research Brief
A research brief is a write-up from the client to the research agency. It clearly outlines the technical background stating the objective and action standard for the study. A marketing research brief is a write-up drawn up at the marketing department of an organisation on the problems identified, i.e., what the problems are, how and why is the problems, etc. It is a clear statement of the problem situation of the company.A brief is required in marketing research for the following reasons:
- It imposes the necessary discipline on the client to think about the problem and
- It often alters the client's perception of the problem and may even provide the solution. The brief helps the researcher and the client to understand the problem properly. Also a marketing research brief elicits response from the research agency, which comes in form of proposal.
- Introduction; usually called Background
- The Research Objective
- Action standard
- Timing.
Marketing Research Brief (Hypothetical example)
BackgroundOLC Manufacturing Company Nig. Ltd is a private Nigeria company, which has been in business for the past five years. The company has just introduced into the market a seasoning condiment (BB) to its MC tomato- paste, which is still doing very fine in the market.
Before the introduction of the product, information was gathered in the food seasoning market in Lagos where largest volume of sales takes place. The test-marketing was successful before the launch and mass production started.
During the initial survey in the market on the competing brands, it was discovered that all the other brands like MM, DD, etc. are brown in colour and packaged in cubes. The company decided to produce white-colour seasoning condiment to arouse interest in consumers and also provide a change. The package is also done in polythene bags for both family sizes and industrial sizes like restaurants and hotels.
In the first year of its operation, there was rapid growth in production. With the success recorded, the desire to extend marketing beyond Lagos became appealing and this led to opening of distribution outlets across Nigeria based on the favourable sales recorded in Lagos State Prior to the expansion in market outlets and production, a market research was carried out in Benin area where the study showed a favourable result of wide acceptability. Sales volume after the national launch was good in the average for some few months after which a sudden decline followed for about eight months, now almost pushing the product out of the market.
The OLC management after critically looking at the issue feels the problem may have to do with the sudden launch nation-wide without caution, and basing decision on Benin and Lagos alone without considering factors outside those areas and the suspicion of a change in product quality.
It is essential that the company explores the customers' reaction and the general market situation as well as competitors.
A commercial research proposal, regardless of length, may include the sections stated below:
A hypothetical marketing research proposal is given below to show what a typical research proposal looks like.
Research Objectives
In line with the background information given above, the objective of this study is to explore the reasons behind the sudden downward turn in sales volume with special attention to customer reaction to the product as against other seasoning products in the market. At the same time, attempt should be made at identifying any inherent deficiency in product quality, appeal, and competition.Action Standard
In view of the objective set out, OLC Management would like the research to cover Lagos and Benin, the two areas previously researched on, and a good presentation of how the product is doing nationally. Special attention should be paid to the new areas opened up after Lagos and Benin. Distinction should be made between household food seasoning for commercial catering services, i.e. hotels and big restaurants. OLC would want to find out if it is viable to continue with the national distribution outlets. OLC expects the report to bring out causes of low or downward trend in sales in the regions. Alternatively, there must be an identification of unviable outlets or sectors that need either closing down or stepping up of marketing efforts.Timing
It is the desire of OLC Company that a quick solution is found to the problem of declining sales. Perhaps it would be of interest to know that the Board of Directors is expected to hold their quarterly meeting in three months time. The management would, therefore, appreciate if the research agency can prepare and submit its research proposal, and possibly carry out the research and then submit its final report within two months to enable the Board take a decision on the findings.Marketing Research Proposal
A marketing research proposal is a response from the research agency to the research brief written by the management. A written research proposal is often required when a study is being suggested. It ensures that the parties understand the project's purpose and proposed methods of investigation. Cost and time budgets are often spelled out as are other responsibilities and obligations. Depending upon the needs and desires of the clients, there may also be substantial background detail and elaboration of proposed research techniques.A commercial research proposal, regardless of length, may include the sections stated below:
- Background
- Study Objectives
- Proposed methodology
- Action Standard
- Analysis and Calculation
- Time Schedule
- Cost Estimate
- Terms of Business.
A hypothetical marketing research proposal is given below to show what a typical research proposal looks like.
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