To remain competitive, it is vital for businesses to understand what benefits
or features consumers seek so that firm can adapt current strategies
and actions to meet real market requirements. For example, a firm
may want to alter current products and services or develop new ones and
they need reliable information about how customers are likely to respond.
Businesses must also be able to gauge how consumers may react to
possible changes in a brand or how consumers responded to a recent
advertising campaign. Additionally, a firm should seek to know how
consumers view the corporate image. Marketing research is a field within
marketing that serves to identify opportunities and problems with consumers,
channel members, the sales force, and the general public to enable the
firm to make educated decisions with regard to marketing and
business initiatives. In a sense, marketing research seeks to give the
business ‘a pulse’ of what is happening within the consumer and market
environment for the purpose of maximising the effectiveness of its marketing
activities.
The market research process
The business owner can conduct the research his self or give it out to professional to do the most effective job. Initially, the researcher must meet with the owners to obtain an understanding of the problem at hand. To understand the problem and develop a research approach, the researcher has to identify what should be measured and how to effectively capture relevant data. Data collection and analysis are generally two of the most involved steps in marketing research, and much attention is devoted to these areas. The final step involves presenting a written document that addresses the researcher’s process and results. The purpose of the report is to provide information for better decision making – for example, the kind of features that are most likely to please consumers of a new product version, the type of designs customers find most attractive and fashionable, or the right market sector to target for a promotional campaign.
The nature and structure of the market research industry
Marketing research generally serves to fulfil two main purposes: the identification of problems and/or opportunities and the creation or improvement of marketing activities. The identification of problems often involves research into market potential, market share, image, sales analysis, or business trends. Researchers often look at trends within the economic environment or culture that may signal opportunities to take advantage of or identify problems to address. Working to improve marketing activities or create new ones coincides with problem identification and seeks to correct problems that are already known.
The limitations of marketing research
It would be a mistake to imagine that proper research always leads to the right result. The practice of marketing research cannot always guarantee a positive outcome; it can only serve to provide entrepreneurs with more information with which to carry out focused activities and make important decisions. However, each decision that
is supported by marketing research and fails causes people to doubt its effectiveness. Many decision-makers find this to be frustrating, given the cost
of research, the time required, and the validity of research methods.
While many entrepreneurs doubt the effectiveness of marketing research, it has proven to be useful over a long period of time. Research does not substitute for decision making. The data collected and presented from a market research project serves as the foundation from which informed decisions can rfbe made
