Marketing Management

Prof. Swati Joshi

 Introduction
Marketing is the performance of the
business activities that direct the
flow of goods and services from the
producer to the consumer.

2
A SIMPLE MARKETING SYSTEM
COMMUNICATION

GOODS & SERVICES

INDUSTRY MARKET
(A collection Marketing Organisation (A collection
of sellers) of buyers)
MONEY

INFORMATION

3
 What is Marketing?
Marketing is a societal process by which individuals
and groups obtain what they need and want
through creating, offering, and freely exchanging
products and services of value with others.
- Philip Kotler
 Need, wants and demand
 Product and Services
 Customer Satisfaction
 Exchange, Transaction and Relationships

4
Marketing Management
Marketing Management is the
process of Planning and
Executing the concept, pricing,
promotion, and distribution of
ideas, goods, services to create
exchanges that satisfy individual
and organization goals.

5
 MARKETING CONCEPTS-I
There are five competing concepts under which
organizations conduct marketing activities:

 The PRODUCTION CONCEPT holds that

consumers will prefer products that are widely
available and inexpensive.

 The PRODUCT CONCEPT holds that consumers

will favor those products that offer the most
quality, performance, or innovative features.

6
 MARKETING CONCEPTS-I
 The SELLING CONCEPT holds that
consumers and businesses, will ordinarily not
buy enough of the organization’s products.
The organization must therefore, undertake an
aggressive selling and promotion effort.

 The MARKETING CONCEPT holds that the

key to achieving its organizational goals
consists of the company being more effective
than competitors in creating, delivering, and
communicating customer value to its chosen
target markets.

7
 MARKETING CONCEPTS-I
 The SOCIETAL MARKETING concept holds that
the organization’s task is to determine the needs,
wants, and interests of the target markets and to
deliver the desired satisfactions more effectively
than competitors in a way that preserves the
consumers’ and society’s well-being.

8
 Selling ad Marketing
Selling
• Selling starts with seller &
is preoccupied all the time
with the needs of the seller
• Emphasizes on saleable
surplus available with the
company
• Seeks to convert products
in to cash
• Views business as – goods
producing process
• Selling views the customer
as the last link in the
business
Marketing
• Marketing starts with the
buyer and focuses
constantly on the needs of
the buyer
• Emphasizes on
identification of market
opportunity
• Seeks to convert customer
needs in to products
• Views business as – a
customer satisfying
process
• Marketing views the
customer as the very 9
 Marketing
Function

Facilitate Research
Involving Facilitate Physical Facilitating
and
Exchange handling exchange
development

Packaging
Marketing research Branding
Buying Warehousing
Product R & D Promotion
selling Transportation
Pricing

10
 Marketing functions
Facilitate Research and development
 Marketing research
 Product R & D

Involving Exchange
 Buying
 Selling

Facilitate Physical handling

 Packaging
 Warehousing
 Transportation

11
 Marketing Functions
Facilitating exchange
 Branding
 Promotion
 Pricing

12
 MARKETING
ENVIRONMENT & SYSTEM

13
MACRO ENVIRONMENT FACTORS

 DEMOGRAPHIC ENVIRONMENT
 ECONOMIC ENVIRONMENT
 NATURAL ENVIRONMENT
 TECHNOLOGICAL ENVIRONMENT
 POLITICAL-LEGAL ENVIRONMENT
 SOCIAL-CULTURAL ENVIRONMENT

14
 DEMOGRAPHIC ENVIRONMENT
 Population Growth
 Population Age Mix
 Population’s Income Level
 Educational Groups
 Household Patterns
 Geographical Shifts in Population
 Shift from Mass to Micro markets

15
 ECONOMIC ENVIRONMENT
 Income Distribution
 Subsistence economies
 Raw-material-exporting economies
 Industrializing economies
 Industrial economies
 Savings, Debt, and Credit Availability

16
 NATURAL ENVIRONMENT
 Shortage of Raw Materials

 Increased Energy Costs

 Increased Pollution Levels

 Changing Role of Governments

17
 TECHNOLOGICAL
ENVIRONMENT

 Accelerating Pace of Technological

Change
 Unlimited Opportunities for
Innovation
 Varying R&D Budgets
 Increased Regulation of
Technological Change

18
 POLITICAL-LEGAL
ENVIRONMENT
 Legislation Regulating Business:
 MRTP Act
 FDI
 Growth of Special Interest Groups

19
 MICRO ENVIRNOMENT
FACTORS
 The company
 Suppliers

 Market intermediaries

 Customer

 Competitors

 Publics, etc..

20
 Duties and responsibility of
manager in changing economy

 Marketing planning and organizing

 Understanding consumer
 Product management
 Pricing strategy
 promotion strategy
 Distribution and public policy

21
 Marketing Organisation

Organization refers to any system, body of

group of people, comprising various sub
systems or parts which are inter-related
on each other and or inter- dependent on
each other.

22
Principles of Designing an Organisation

 Specialisation
 Departmentalisation
 Standardisation
 Formalisation
 Centralisation
 Evaluation
 Structure

23
 Marketing Organisation
 Considerations involved in designing the
marketing organisation
– Statement of objective and goals of the firm
– Nature of the product/Line of activity
– Areas of operation
– Nature of Industry
– Computerisation & up-gradation of information
system
– External environment & Government
intervention.

24
 Types of Organization
 Tall Organization:-

In Tall organization,
there are less
subordinates under
one superior. There
for it increases the
number of levels in
the organization

25
Advantages of Tall Organization
 The quality of performance is likely to improve
because of close supervision
 It develops better and closer superior-
subordinate relationship
 Control and supervision becomes more easier
and convenient
 Good discipline
 Less distortion communication between
superior and subordinate

26
Disadvantages of Tall Organization
 Often delay and distortion in communication
between levels
 Difficult to coordinate activates between levels
 Expensive
 Strict supervision
 Superior become more demanding

27
 Flat Organization
 In Flat organization, there are more
subordinate under one superior. There are
less number of levels in the organization

28
 Advantages of Flat organization
Advantages
 Less Expensive
 Quick action
 Quick Communication
 Coordination
 Subordinate are free from supervision
 Facilitate fewer level of management

29
Disadvantages of Flat organization
Disadvantages
 Losses control
 Problem of Discipline
 Superior-subordinate relationship
 Problem of team work
 Problem of coordination between subordinate

30
 Methods of designing the Marketing
Organisation
 End- user based Organization
 Functional Organisation
( According to different functions such as, MIS, Sales,
Marketing research ect..)
Director Marketing

Research MIS Sales Advertising New Product

Assistance sales

Executive 1 Executive 2 Executive 3 31

• Geographical base Organisation
( According to Zone wise, District wise Area wise etc..)

Corporate Head office

V.President

General Manager

Research MIS Sales Advertising New Product

North Zone East Zone West Zone

32
 • Product Management Organisation
( According to product line )
Director Marketing

V.President

General Manager

Research MIS Sales Advertising New Product

Assistant Assistant Assistant

Manager Manager Manager
Product A Product B Product C

33
MARKET SEGMENTATION

34
 Benefits of segmentation to the marketer:

• Facilitates proper choice of target market

• Facilitates tapping of the market, adapting the
product offer to the target
• Makes the marketing effort more efficient and
economic
• Helps to identify less satisfied segments and
concentrate on them
• Differentiate your products and services to meet
your customer needs and desires.
• Helps to generates more profits
• Helps to satisfy customer
• Facilitate spread effects 35
 Bases for Segmenting
Consumer Markets
Geographic
Region, City or Metro
Size, Density, Climate Demographic
Age, Gender, Family size
and Life cycle, Race,
Occupation, or Income ...

Psychographic
Lifestyle or Personality

Behavioral
Occasions, Benefits,
Uses, or Attitudes
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 SEGMENTATION VARIABLES
 Geographic Segmentation:
 By Nations
 By Regions
 By States
 By Cities
 By Localities

37
SEGMENTATION VARIABLES

 Demographic Segmentation:
 By Age
 By Gender
 By Income
 By Education Level
 By Religion
 By Nationality

38
SEGMENTATION VARIABLES

 Psychographic Segmentation:

 By Personality

 By Lifestyle

 By Social Class

39
 SEGMENTATION VARIABLES
(CONTD)
 Behavioral Segmentation:

 By Usage Pattern
 By Occasion
 By Loyalty Factor
 By Attitude Towards The Product

40
Types of Market Segmentation
 No Segmentation

 Complete Segmentation

41
Types of Market Segmentation
 Partial Segmentation

42
 Effective Segmentation
• Size, purchasing power,
Measurable
Measurable profiles of segments can
be measured.

• Segments must be large or

Substantial
Substantial profitable enough to serve.

• Segments can be
Accessible
Accessible effectively reached and
served.

• Segments must respond

differently to
Differential
Differential different marketing mix
elements & actions.

• Must be able to attract and

Actionable
Actionable serve43
the segments.
Additional Segmentation Criteria
 EthicalChoice of Market Targets
 Segment Interrelationships &
Supersegments
 Segment-by-Segment Invasion Plans

 Intersegment Cooperation
 Five Patterns of Target Market
Selection
Single-segment Selective Product
concentration specialization specialization
M1 M2 M3 M1 M2 M3 M1 M2 M3
P1 P1 P1
P2 P2 P2
P3 P3 P3
Market Full market
specialization coverage
M1 M2 M3 M1 M2 M3
P1 P1
P = Product
M = Market P2 P2
P3 P3
 Selection of Segments
 General Factors
 Company thrust
 Size and growth potential
 Investment needed
 Risk
 Competition

 Specific Segmentation Factors

 Segment Durability
 Mobility
 Visibility
 Accessibility
46
 Market Segmentation, Targeting,
and Positioning
Market Market Market
Segmentation Targeting Positioning
1. Identify 3. Evaluate 5. Identify
segmentation attractiveness possible
positioning
variables and of each concepts for
segment the segment each target
market segment
4. Select the
2. Develop target 6. Select,
profiles of segments) develop, and
communicate
resulting the chosen
segments positioning
concept 47
Case study:

“When we say it’s a pocket camera, We actually mean

the pocket.” – the world’s smallest 35mm zoom
camera.
Olympus has developed an extremely tiny
35mm zoom camera. Is the company
engaging in mass marketing, segment
marketing, local marketing, niche marketing,
or individual marketing? Based on this
information, which demographic, and
behavioral variables do you think Olympus is
using to segment its consumer markets?
Answer:
Olympus seems to be engaging in segment
marketing, targeting consumers who want an
especially small pocket-size camera with a zoom
lens. This segment has particular wants that
differ from the wants of the larger market. The
overall market may want a smaller camera or a
zoom camera, but the segment targeted by
Olympus wants both a tiny camera and a zoom
lens. Olympus appears to be using several
demographic, psychographic, and behavioral
variables to segment its consumer markets,
including: age (relatively young consumers);
active lifestyle; and flexibility and convenience
benefits. Students may suggest additional
Variables.
Types of Markets
 What is Market?
A market is where buyers and sellers:
 meet to exchange goods and services

 usually in exchange for money

The market may be in one specific place

or
not exist physically at all

51
 Consumer Markets
 Consumer markets are the markets for
products and services bought by individuals
for their own or family use. Goods bought in
consumer markets can be categorized in
several ways:
 FMCG

– These are high volume, low unit value,

fast repurchase
– Examples include: Ready meals; Baked
Beans
Newspapers

52
 Consumer Durable
– These have low volume but high unit value.
Consumer durables are :
(fridge-freezers; cookers; dishwashers;
microwaves)
DVD players; games consoles; personal
computers)
 Soft Goods
– Soft goods are similar to consumer durables,
except that they wear out more quickly and
therefore have a shorter replacement cycle
– Examples include clothes, shoes
 Services
(e.g. hairdressing, dentists, childcare)

53
 Industrial Markets
Industrial markets involve the sale of
goods between businesses. These are
goods that are not aimed directly at
consumers. Industrial markets include
 Selling finished goods
– Examples include office furniture, computer
systems
 Selling raw materials or components
– Examples include steel, coal, gas, timber
 Selling services to businesses
– Examples include waste disposal, security,
accounting & legal services
54
Classification of industrial goods
 Material
Raw materials fall into two major groups:
farm products (e.g. wheat, cotton, livestock,
fruits, and vegetables) and natural products (e.g.
fish, lumber, crude petroleum, iron ore).

 Capital Goods
Capital items are long-lasting goods that
facilitate developing or managing the finished
product. They include two groups: installations
and equipment. Installations consist of building
(factories, offices) and heavy equipment
(generators, drill presses, mainframe computers,
elevators).
55
Classification of industrial goods
 Supplies and services

 Supplies and business services are short-term

goods and services that facilitate developing or
managing the finished product. Supplies are of
two kinds: maintenance and repair items (paint,
nails, brooms), and operating supplies
(lubricants, coal, writing paper, pencils).

 Business services include maintenance and repair

services (window cleaning, copier repair) and
business advisory services (legal, management
consulting, and advertising).

56
Market-Oriented Strategic
Planning

Objectives Resources

Profit
and
Growth
Skills Opportunities
 Corporate Headquarters
Planning
 Define the corporate mission
 Establish strategic business units
(SBUs)
 Assign resources to SBUs

 Plan new business, downsize older

businesses
Strategic-Planning, Implementation,
and Control Process

Planning Implementation Control

Corporate Measuring
planning Organizing results
Division
planning Diagnosing
results
Business Implementing
planning
Taking
Product corrective
planning action
 The Boston Consulting Group’s
Growth-Share Matrix
Market Growth Rate

Stars Question marks

4
3
?2 ? 1
High
5 ?

?
Cash cow Dogs
Low 8
6 7
High Low
Relative Market Share
 The Strategic-Planning Gap

Desired
Desired
sales
sales
Diversification growth
Strategic-
planning
Integrative growth gap
Sales

Intensive growth

Current
Current
portfolio
portfolio

0 5 10
Time (years)
 Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion
Grid
Existing New
products products

Existing 1. Market 3. Product

markets penetration development

New 2. Market
markets development 4. Diversification
Good Mission Statements:

Limited number of goals

Stress major policies & values

Define competitive scopes

 The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
Company
Marketing Strategy
Marketing
intermediaries
Demographic/ M Technical/
economic pl ark physical
sy ann etin

st at ng
environment environment

n
em io
sy rm eti
st in g
em g
fo rk
in Ma Product

Suppliers Place Target Price Publics

customers

tio nd
or Ma

en ion g

n
ta a
g r

em at tin
sy ani ket Promotion

pl niz ke
st z a i n g
im ga ar
em tio
Political/ n or M Social/
legal cultural
environment environment
Competitors
 Review

 Corporate and division strategic

planing
 Business unit planning
 The marketing process
 Product level planning
 The marketing plan
 Case Study: United Parcel Service (UPS)
Messages from the Advertisement:

“Fortunately, there’s a global delivery service as good as UPS”

UPS Worldwide. Just image, the same fast , reliable service

you’re used to over here, all around the world. In fact, UPS
guarantees on-time delivery to over 200 countries worldwide.
Your shipments get electronic customs clearance. On-line
tracking, in 16 different languages. And better yet, we’re so
confident we’ll get your shipment there, we’ll give you your
money back if we don’t. That’s a promise that sounds good in
any language. So when you’re shipping overseas, do the same
thing you do at home. Just call 1-800-pick-UPS.
Question:

United Parcel Service delivers packages

and documents to customers in more
than 200 countries every day, as this
ad indicates. Overall, the company’s
global volume of 3 billion yearly
deliveries rings up over $22 billion in
annual revenues. Is UPS pursuing a
cost leadership strategy, differentiation
strategy, or focus strategy? How
importance are the systems to the
successful implementation of UPS’s
strategy?
The Marketing Mix

The Tools of Marketing Management

 The Marketing Mix
 These are the tools of
marketing management
employed by marketers. They
are areas where marketing
managers need to make
decisions. These decisions
affect the nature of the
offering or package of benefits
that the organisation offers to
customers.
 The tools are commonly
known as the 4P’s or 7P’s.
 The Marketing Mix
The term “mix” is used to
explain the point that at any one
time the marketer will select a
set of tools from the marketing
toolbox or the marketing mix in
specific proportions to solve
specific problems – in the same
way one selects spanners and
other tools for a specific job OR
ingredients to bake a particular
type of cake.
 What are the tools?
 Product

 Price

 Promotion

 Place (Distribution)

 People

 Process

 Physical evidence
 Product
 Quality
 Features
 Options
 Style
 Brand name
 Packaging
 Sizes
 Services
 Warranties
 Returns
 Price
The value that is
put on the
exchange process
 List price

 Discount

 Allowances

 Payment period

 Credit terms
 Promotion (Communication)
 Advertising

 Personal selling
 Sales promotion

 Public relations
 Direct Marketing
 Place (Distribution)
 Channels

 Coverage

 Locations

 Inventory

 Transport
 The Seven P’s
 Booms and Bitner
extended the
traditional 4P
(McCarthy)
framework to seven
to reflect a
predominantly
service economy
 Extended mix:

– People
– Process
– Physical evidence
 People
 The attitudes of staff
 Training of staff
 Internal relations
 The observable behaviour of
staff
 The level of service-
mindedness in the
organisation
 The consistency of
appearance of staff
 The accessibility of people
 Customer-customer
contacts
 Process
The manner in which the
service is delivered
 Degree of customer contact

 Quality control standards

 Quality assurance

 Payment methods
(degree of convenience)
 Queuing systems for
customers
 Waiting times
 Physical Evidence - ambience
The “environment” or atmosphere in which the
service is delivered
 Buildings
 Furnishings/décor
 Layout
 Goods associated with the service e.g. carrier
bags, tickets, brochures
 All the above can help shape customers’
perceptions of the service
 Combining the Mix
The marketing manager has to identify the
needs of his or her target market through
marketing research and other investigative
techniques. The manager must understand
customers’ characteristics and buying habits,
for example. He/she then has to blend the
components of the mix to formulate strategies
and tactics by which those needs can be met.
 Combining the Mix
This is the essence of
marketing: identifying,
anticipating, and
satisfying customer needs
in the most profitable way
possible: delivering
profits to the organisation
and value to customers at
the same time!
Case study:

“When we say it’s a pocket camera, We actually mean

the pocket.” – the world’s smallest 35mm zoom
camera.
Olympus has developed an extremely tiny
35mm zoom camera. Is the company
engaging in mass marketing, segment
marketing, local marketing, niche marketing,
or individual marketing? Based on this
information, which demographic, and
behavioral variables do you think Olympus is
using to segment its consumer markets?
Answer:
Olympus seems to be engaging in segment
marketing, targeting consumers who want an
especially small pocket-size camera with a zoom
lens. This segment has particular wants that
differ from the wants of the larger market. The
overall market may want a smaller camera or a
zoom camera, but the segment targeted by
Olympus wants both a tiny camera and a zoom
lens. Olympus appears to be using several
demographic, psychographic, and behavioral
variables to segment its consumer markets,
including: age (relatively young consumers);
active lifestyle; and flexibility and convenience
benefits. Students may suggest additional
Variables.
Types of Markets
 What is Market?
A market is where buyers and sellers:
 meet to exchange goods and services

 usually in exchange for money

The market may be in one specific place

or
not exist physically at all

86
 Consumer Markets
 Consumer markets are the markets for
products and services bought by individuals
for their own or family use. Goods bought in
consumer markets can be categorized in
several ways:
 FMCG

– These are high volume, low unit value,

fast repurchase
– Examples include: Ready meals; Baked
Beans
Newspapers

87
 Consumer Durable
– These have low volume but high unit value.
Consumer durables are :
(fridge-freezers; cookers; dishwashers;
microwaves)
DVD players; games consoles; personal
computers)
 Soft Goods
– Soft goods are similar to consumer durables,
except that they wear out more quickly and
therefore have a shorter replacement cycle
– Examples include clothes, shoes
 Services
(e.g. hairdressing, dentists, childcare)

88
 Industrial Markets
Industrial markets involve the sale of
goods between businesses. These are
goods that are not aimed directly at
consumers. Industrial markets include
 Selling finished goods
– Examples include office furniture, computer
systems
 Selling raw materials or components
– Examples include steel, coal, gas, timber
 Selling services to businesses
– Examples include waste disposal, security,
accounting & legal services
89
Classification of industrial goods
 Material
Raw materials fall into two major groups:
farm products (e.g. wheat, cotton, livestock,
fruits, and vegetables) and natural products (e.g.
fish, lumber, crude petroleum, iron ore).

 Capital Goods
Capital items are long-lasting goods that
facilitate developing or managing the finished
product. They include two groups: installations
and equipment. Installations consist of building
(factories, offices) and heavy equipment
(generators, drill presses, mainframe computers,
elevators).
90
Classification of industrial goods
 Supplies and services

 Supplies and business services are short-term

goods and services that facilitate developing or
managing the finished product. Supplies are of
two kinds: maintenance and repair items (paint,
nails, brooms), and operating supplies
(lubricants, coal, writing paper, pencils).

 Business services include maintenance and repair

services (window cleaning, copier repair) and
business advisory services (legal, management
consulting, and advertising).

91
 Types of Market
 Consumer Market
 Industrial market

 Government market

 Global market

92
 Marketing research and
forecasting
• Marketing research is the systematic,
objective and exhaustive search for the
study of the facts relating to any problem
in the field of marketing. It is the research
on the manifold problems of marketing.
Its purpose is to aid decision making in
marketing. It is the systematic gathering
and analysis of information.

93
 Marketing Research
 Marketing Research is the planning,
collecting, and analysis of data relevant
to marketing decision making. It plays
a key role in the marketing system.

94
 Research Approaches

Observational
Observational

Focus-group
Focus-group

Survey
Survey

Behavioral
Behavioral

Experimental
Experimental
The Marketing Research Process

Defining
Defining the
the Developing
problem
problem and
and Developing Collect
Collect the
the
research the
the research
research information
research plan
plan information
objectives
objectives

Present
Present the
the Analyze
Analyze the
the
findings
findings information
information
 Scope of Marketing Research

• Sales Analysis
• Product Management
• Advertising Research
• Corporate Research

97
 Types of Market Research

 Focused Market research

 Time based Market Research

98
 Data Sources
 Primary Data:
First hand data, fresh data, reliable
data

 Secondary Data:
Used data, secondhand data.

99
 Merits / Usefulness of
Primary Data
 Provide first hand information
 Helps to formulate hypothesis

 Provide Supplementary information

 Collected for universal purpose

 Fresh data

100
 Demerits of Primary Data
 Time consuming
 Expensive

 Irrelevant

 Hoax(wrong) data

 Chance of Basie

101
 Methods of collecting Primary
Data
 Survey Method-
-Postal Survey
-Personal Interview & Group Interview
-Telephonic interview

 Observation Method

 Experimental Method
102
 Secondary Data
 Easily available
 Universal purpose

 Reliable data

 Quantitative data

 Comprehensive in nature

103
 Demerits of secondary Data
 Less accurate
 Less reliable

 Relevance

 Less Qualitative

104
 Sources of Secondary Data
 Internal Sources
(sales, purchase record, financial records,
library, special magazines and books)

 External Sources

(census report, newspaper, magazines, Trade

Journals, statistic of nationals and foreign
income)
105
 Questionnaire
 Questionnaires are used as a direct method in
conducting interview for data collection

 Questionnaire
is indirect and impersonal
method of conducting survey

106
 Advantages of Questionnaire
 Easy to collect information

 Easy to execute

 Large coverage
 Quality of data

 Structured response

 Low cost

 convenience

107
Disadvantages of Questionnaire
 Suitability

 Rate of response
 Quality of data

 Rigid and restricted response

 Attitude of respondents

 Personal touch

 Verification facts

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 Types of questions
 Open Ended Questions

 Close Ended Questions

 Semi-Structured Questions

 Filtered Questions

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 Preparation of Questions
 Preliminary Decision

 Decision on the content of questions

 Decision on wordings of questions

 Decision on type of questions

 Decision on sequence of the questions

 Pilot study of questions

 Revision and final draft

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 Features of Good Questions
 Relevant questions

 Clarity

 Logical Sequence

 Physical Appearance

 Pretesting of Questionnaire

 Questionnaire should be open ended

 Easy to understand

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 Sampling plan
 Those individuals chosen form the population
of interest as the subject in an experiment or to
be the respondents to survey.

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 Methods of sampling
 Probability Sampling

-Simple Random Sampling

-Systematic Random Sampling
-Stratified Random Sampling
-Cluster Sampling

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 Simple Random Sampling
Method of sampling which provides every
element in the population an equal and known
change of being selected in the sample.

This method is also called “Representative Sampling” and is

suitable for selecting a sample from a small and heterogeneous
population.
1) Lottery Method
2) Random Tables

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 Systematic Sampling
 It is modification of simple random sampling.
It is also called as quasi-random sampling. It is
called quasi because it is between probability
and non-probability sampling.

E.g.. Selecting a sample 50 out of 500 at the interval of 10 than

and by using lottery method select any no and take interval of
that the sample size will be 4,14,24,34,…

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 Stratified Random Sampling
 In this method, the population is divided and
subdivided with homogenous or similar
characteristics.
(e.g.- group of 200 college teacher)
(e.g.- group of employee of the organization)

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 Merits of Stratified Sampling
 It enhance the representativeness of a sample report
by giving proper representation to all subgroup of a
population.
 I gives higher statistical efficiency than random
sampling
 It is easy to understand and apply.

 It facilitate decision making in research

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 Demerits of Stratified Sampling
 A prior knowledge of composition of population is
required to adopt this method.
 It is an expensive method

 It has probability of leading to classification errors.

 The sample generating from such method are less

representative
 It is practically less reliable and less feasible

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 Cluster Sampling
 The working of cluster sampling is based on the
principle that it is beneficial to use large sample of
scattered over a wide area
E.g.. Researcher want to study habits of students of pune than sampling
will be as under
1) List of colleges in pune city

2) If there are 200 college than select 20 college by random sampling

3) From 20 college 1000 students than select the students by random

sampling.

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 Non-Probability Sampling
 AccidentalSampling
 Convenience Sampling

 Judgment sampling

 Purposive Sampling

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 Processing and Analysis of
Data
 Stages of Processing Data

-Editing
-Classifications
-Coding
-Transcription
-Tabulation
-Graphical Representation
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 Processing and Analysis of
Data

 Analysis of Data

 Interpretation of Data

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 Research Report
To convey to the interested persons
the whole result of the study in
sufficient detail and so arranged as
to enable each reader to comprehend
the data and so determine for
himself the validity of conclusions.

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 Characteristic of good Market
research report
 Logical arrangement
 Reference

 Drafting in impersonal style

 Proper format

 Date and signature

 Objectivity

 Reliability

 Accuracy

 Clarity

 Concise 124
 Principle of writing market
research report
 Length
 Interesting

 Simple

 Graphical presentation

 Layout

 Grammatical Accuracy

 Solution to a problem

 Implication

 Appendices, Bibliography, Conclusions

 Appearance

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 Objective of Market Research
 To find solution to the problem

 To verify and test existing laws or theory

 To obtain information

 To extend Knowledge

 To establish general laws

 To predict events

 To develop new tools, concepts and theories

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 Reasons for Failure of Market
Research
 Incorrect Data
 Incorrect data analysis

 Wrong representation

 Selection of wrong mathematical

tools
 Selection of wrong hypothesis tools

 Wrong method of data collection

etc…
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What

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 Scope of Marketing Research

• Sales Analysis
• Product Management
• Advertising Research
• Corporate Research
• Syndicated Research

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