Marketing Research is a continuous process for collecting, investigating and interpreting information about a particular market a company operates in or a product/service the company offers for selling in that market, and also about potential and existing competitors and the past, present and potential customers who purchase and consume the offered product/service. Conducting marketing research means making an analysis of all information about the market, product/service, customers and competitors in order to investigate possible ways for the company to successfully operate in the market, sell the product/service, attract the target audience and gain competitive advantages. Conducting marketing research is one of the key duties of marketing departments and teams. For any company it is also important to organize regular marketing research to get insight into the market, investigate spending habits of the customers, identify existing and potential competitors, develop solutions for product promotion and advertizing, increase company’s recognition, improve business reputation, and so on. Researching the market is an important activity providing any company with more business planning solutions that can improve the company’s performance, improve sales and increase revenue.
There are two methods of marketing research- primary research & secondary marketing research. While primary marketing research seeks to understand customer motivations, opinions and needs through quantitative and qualitative field research. In contrast to that, secondary marketing research uses already existing sources of information to gather the data. The Advantages of Marketing Research
There is no doubt about the importance of marketing research. To prove this statement, let’s view why marketers should research markets. Market research is important for any business because it provides with the following opportunities: Identify the customers: Marketing research gives a marketer better understand of his customers in a number of ways including demographic information such as their age, gender and geographic spread. The better a marketer knows his customers, the easier it is to target those customers. Identify the target market: Marketing research provides customer’s information in terms of their location, age, buying behavior and gender. From the marketing research a marketer can exactly know who are the existing customers .Marketing research also helps to find out the potential customers. Discern the competition: Market Research helps a marketer to measure his service compared to others. Through marketing research a marketer easily identifies what are the strengths and weaknesses of his company and what areas should be improved. Improve quality of the product/service: Marketing research is greatly helpful in the improvements of the quality of the products produced as it keeps informing the organization about likes and dislikes of consumers. If the product is not of desired quality, improvement can be made in its quality on the basis of information revealed by marketing research.
Minimize the risk of doing business: Instead of identifying opportunities, the results of some market research may indicate that when marketer should not pursue a planned course of action. For example, marketing information may indicate that a marketplace is saturated with the type of service marketer plan to offer. This may cause marketer to alter his product offering or choose another location. Just like these situation, if a marketer comes prepared he/she will be less likely to loose and more likely to win. By doing marketing research the marketer gets the idea of uncertainty and takes the proper solution. Ultimately, it will minimize the risk.
Helps to take marketing decisions: Marketing research helps the marketers to make a decision about the product or service. Sometimes a marketer might believe that the new product or service is useful for the...