Marketing research is carried out when,
a) there are unanswered questions, an ‘’Information Gap’’, b) the cost of filling this gap is less than the cost of taking a wrong decision & c) the time taken for research does not delay the decision making by unreasonable limits causing undesirable effects such as leaking of strategies or tactics of a company to their competitors, change in consumer opinion between the beginning and end of the study, etc.
The applications of marketing Research can be broadly divided into two broad areas:
1. Strategic – Applications such as demand forecasting, sales forecasting, segmentation studies, identification of target markets for a given product, and positioning strategies identification.
2. Tactical – Applications such as product testing, pricing research, advertising research, promotional research, distribution and logistics related research. In other words it would include areas related to the 4 P’s of marketing: how much to price the product, how to distribute it, whether to package it in one way or the another, what time to offer a service, consumer satisfaction w.r.t. the different elements of the marketing mix i.e., Product, Price, Promotion And Place. In general, we would find more tactical applications than strategic applications, because these areas can be fine-tuned more easily, based on market research findings. Also, strategic changes are likely to be fewer than tactical changes.
Types of Marketing Research
Researches can be classified into various types depending upon the area of business in which an information gap exists. The types of research in a broad perspective can be classified as,
1) Exploratory Research- The exploratory research is primarily carried out to a) get a clear understanding of the thought process and opinions...