Class 11 Entrepreneurship Notes · CBSE

Market Research

Market Research — covers the systematic process of gathering and analysing market data, the 7-step research process, and the importance of surveys with real-world case studies. CBSE Class 11 Entrepreneurship notes.

Last updated: 10 Sep 2026

Notes

What is Market Research?

Market Research

Market Research is referred to as the systematic study and evaluation of all factors bearing on any business operations which involves the transfer of goods from a producer to a consumer. — A.G.R. Deiens

All decisions are based upon either information or assumptions. Before committing time and energy to preparing a business plan, the entrepreneur should do a quick feasibility study of the business concept to see whether there are any possible barriers to success.

What market research does

Market research links the consumer, customer and public to the marketer through information that is used to:

•Identify and define marketing opportunities and problems
•Generate, refine and evaluate marketing actions
•Monitor marketing performance
•Improve understanding of marketing as a process

Think about it: before opening a coaching centre near your school, you would ask students which subjects they struggle with, how much they would pay, and when they are free. That is market research — the same process Nissan used, just smaller. Negative example: a tiffin service that assumes students want healthy food, but finds they want cheap and fast — assumptions are not research.

Case Studies — Why Research Matters

Four real cases show how research changed the decision. Pick a case, then step through its stages.

Stage 1 — Scenario

One of the early Japanese invaders of the American car market was the Datsun. Later, it changed its name to Nissan but continued to compete successfully. In 1987, Nissan sold 753,000 cars and trucks to U.S. buyers — but this was a drop of 3 percent from the previous year.

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Think about it: Nissan spent millions on ads not because the cars were bad, but because customers were confused. Research turned a vague worry into a precise, fixable problem.

Parallel example: Parallel example: when Maggi faced the 2015 ban, Nestlé ran research and a mass reassurance campaign to rebuild trust — same pattern: diagnose the perception problem before spending on a fix.

Marketing Research Process — 7 Steps

Defining the Problem

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Defining the marketing problem to be tackled and identifying the marketing research problem involved in the task.

Market research, in a way, is the application of the scientific method to marketing problems. Although no method known to man can entirely eliminate uncertainty, a scientific method can minimize those elements of uncertainty that result from the lack of information.

Characteristics of Good Marketing Information

Marketing research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing. The value and usefulness of information depends on the extent to which it possesses the essential characteristics of good marketing information.

Systematic

Collected and analysed in an organised, step-by-step way — not gathered casually.

Objective

Seeks facts about the problem, not confirmation of what the entrepreneur already believes.

Relevant

Directly connected to identifying and solving a problem in the field of marketing.

Valuable & Useful

Its worth depends on how well it carries the essential characteristics of good marketing information.

Importance of Market Survey

Six reasons why a market survey is worth the entrepreneur's time. Reveal them one at a time.

Customer is the King

To know accurately the customer’s needs and wants, the nature of demand, and their likes and dislikes — this gives an edge over competition.

Risk Reduction

Systematic and intelligent use of a market survey can reduce or minimise the risk of decision making under conditions of uncertainty.

Helps Attaining Objectives

A customised design created to meet the entrepreneur’s specific needs and strategic objectives.

Market Overview

Systematic collection, recording, analysis and interpretation of data relating to the existing or potential market.

Forecast

Provides an accurate, effective and timely sales forecast. To manage a business well is to manage its future, and to manage its future is to manage information.

Facilitates Decision-Making

Helps in short and long term forecasting, comparative effectiveness studies, packaging research, pricing studies and distribution channel strategies.

Key Takeaways

Market research is the systematic study and evaluation of all factors involved in moving goods from producer to consumer.
The 7-step process runs from defining the problem to preparing the research report — skipping steps is how assumptions creep in.
Good marketing information is systematic, objective, relevant, and valuable.
Nissan fixed a perception problem, Kraft avoided a bad launch, Vicks found a narrow position, and Rasna found the real decision-maker — all through research.
So what? Before you spend a single rupee on your next idea, spend an hour asking your potential customers what they actually want. That hour is the cheapest insurance you will ever buy.