- State the meaning of marketing research;
- Give reasons for marketing research.
Lesson Summary/ Discussion
Managers need information in orderto introduce products and services that create value in the mind of the customer. But the perception of value is a subjective one, and what customers value this year may be
quite different from what they will value next year. As such, the attributes that create value cannot simply be deduced from common knowledge, rather data must be collected and analyzed. The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions.
Marketing research is therefore the systematic gathering, recording and analyzing of data about problem relating to marketing of goods and services.
MARKETING RESEACH VERSUS MARKET RESEARCH
These terms are often used
interchangeably, but technically there is a difference.
Market research deals specifically with the gathering of information about a market’s size and trends. Marketing research on the other hand covers a wider range of activities. While it may involve market research, marketing research is a more general systematic process that can be applied to a variety of marketing problems.
Marketing reasearch comprises:
(1) a specific market and measurement Market research: Identification of of its size and other characteristics.
(2) Product research: Identification of a need or want and the characteristics of the good or service that will satisfy it.
(3) Consumer research: Identification of the preferences, motivations, and buying behaviour of the targeted customers.
Information for marketing research
is collected from direct observation
of the consumers (such as in retail
stores), mail surveys, telephone or face-to-face interviews, and from published sources (such as demographic).
REASONS FOR MARKETING RESEARCH
There are so many reasons for carrying out marketing research. These are
1. Introduction of New Product or
Service: Any new business, or
introduction of a new product or
service that the company is thinking
of offering, needs marketing research.
Developing a good understanding of the product and developing a good business plan based on marketing research help provide a solid foundation for your offering.
2. Customer Development: Next to
understanding the product or service you are offering, understanding the customer who will be buying it is paramount. In a consumer based business, understanding the demographics and psychographics
of a target market can be determined by looking at previous purchase behaviour or throughh a needs analysis. In abusiness which sells to other businesses, understanding their needs can be a little more difficult. However, this can be understood by doing surveys offocus groups.
3. Competition Analysis: You need
to understand your competitors.
For most small businesses, getting a general idea of your competitors is usually sufficient. However, larger companies, larger market potentials, or more costly the product, the more detailed the analysis needs to be done.
4. Marketing/Advertising Development: Doing “marketing” research to make sure that the look and feel of marketing is in order.
Messaging is also another good
reason for doing market research.
By reviewing with your buyers on
how, for example, a product package or a logo looks, you can make sure the visual image of your offering is attractive and that your customers are getting the right messaging.
5. Customer Satisfaction: After your
customers have purchased your
product or service, following up with them to understand their satisfaction of that purchase is necessary. By understanding why they liked or disliked your offering and the reasons the customers purchased your product or service over that of your competitors can provide a basis of what could be your competitive advantage.
- What is marketing research?
- What are the reasons for carrying out research on marketing?
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