subject: A Brief Insight On Marketing Research [print this page] The Marketing Research Process The Marketing Research Process
If a company faces many marketing problems about consumers, product, market competition, sales promotion, etc, then the marketing research helps to solve these problems.
Marketing research is a systematic process. It first collects data or information about the marketing problem, then it records this data, analyzes this data, then it draws conclusions about this data, later it gives suggestions or advice for solving the marketing problem. In this way marketing research helps to solve the marketing problems quickly, correctly and systematically.
Why marketing research is necessary for companies/businesses?
Marketing research collects full information about the consumers and finds out the needs and expectations of the consumers. Based on the research, the company will produce goods according to the needs and expectations of the consumers. In this way, marketing research helps the company to make its production and marketing policies, to introduce new products in the market, to identify new markets.
Marketing research also collects complete information about the competitors. The companies use this information to fight competition. It also helps the marketing manager to take decisions.
Research Design
Based on questioning, marketing research is classified into two categories; they are qualitative marketing research and quantitative marketing research.
Qualitative marketing research is generally used for exploratory purposes, here it statistical significance and confidence not calculated. Examples include focus groups, in-depth interviews, and projective techniques.
Quantitative marketing research is generally used to draw conclusions; it includes tests for specific hypothesis, random sampling techniques. Examples include surveys and questionnaires.
Based on research or observation, marketing research is classified into three categories, they are exploratory research, descriptive research and causal research.
Exploratory research is used to formulate problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies.
Descriptive research is used to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product.
Causal research is done through laboratory and field experiments.
Which are the areas where marketing research is used?
Marketing Research is widely used by manufacturers, exporters, distributors and service organisations.
Features of Marketing Research
Some of the salient features of marketing research are as follows:
1: Wide and Comprehensive Scope: Marketing research has a very wide scope. Marketing research is used to select channels of distribution, in advertising strategy, for sales promotion measures, etc.
2: Systematic and Scientific: Marketing research is conducted in a methodical or step-by-step manner, therefore, it is systematic. Marketing research uses scientific methods and hence, it is also scientific.
3: Collects and Analyses Data: Marketing research collects reliable data and then analyses it systematically and critically.
4: Continuous and Dynamic Process: Large companies face marketing problems throughout the year. So, marketing research is conducted continuously for solving the marketing problems. It is a dynamic process because it goes on changing. Research information does not remain static or the same.
5: Tool for Decision-Making: The marketing manager of a company must take many decisions. For this, he requires a lot of data. Marketing research provides accurate and up-to-date data to the marketing manager. This helps him to take quick and correct decisions. Hence, marketing research is an important tool for decision-making.
6: Connected with Marketing Information System i.e. MIS: Marketing research is a part of MIS. Marketing research and MIS are interrelated because; both are used to solve marketing problems and take marketing decisions.
What are the benefits of marketing research?
Marketing Research, when conducted in a systematic, analytical, and objective manner, it can reduce the uncertainty in the decision-making process and increase the probability and magnitude of success. Organizations employ marketing research mainly to identify the problem and to solve marketing problems.
What are the limitations of marketing research?
Marketing research has few limitations. It is not an exact science. So, it does not give accurate results. It provides suggestions and not solutions. It is also a costly and time-consuming process.
