MARKETING RESEARCH

Marketing basically consists of identifying the consumers and satisfying them in the best possible way. Marketing research plays a key role in this process. Marketing research helps the firm to acquire a better understanding of the consumer, the competition and the marketing environment. It also helps the formulation of right marketing mix, which include decisions on product, price, place and promotion.

The conduct of marketing research has become so complex due to increasing complexity of marketing and hence requires specialized skills and sophisticated techniques.

Marketing research has been variously defined by marketing researches.

Richard Crisp defined marketing research “as the systematic, objective and exhaustive search for and study of the facts relating to any probkem in the field of marketing”.

According to Green and Tull, marketing research is “the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing’.

America Marketing Association defined marketing research, “as the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.

An analysis of above definitions clearly highlights the salient features of marketing research:

· It is a search for data which are relevant to marketing problems;

· It is carried out in a systematic and objectives manner;

· It involves a process of gathering, recording and analysis of data.

None of the definitions is explicit about the managerial purposes of marketing research, except saying that data are required for solving marketing problem.

A better definition of marketing research is, that it is an objective, and systematic collections, recording and analysis of data, relevant to marketing problems of a business in order to develop an appropriate information base for decision making in the marketing area.

MARKET RESEARCH

Market research is different from marking research. Market research is a systematic study of ‘facts about market only – who, what, where, when, why, and how of actual and potential buyers.

On the other hand the scope of marketing research is to wide that it includes all functional areas of marketing including market.

IMPORTANCE OF MARKETING RESEARCH

v The emergence of buyer’s market requires continuous need of marketing research to identify consumer’ need and ensure their satisfaction.

v The ever expanding markets require large number of middlemen and intensive distribution. Marketing research should help identify and solve the problems of middlemen and distribution.

v There is always a change in the market conditions and the requirements of consumers. Marketing research enables to anticipate and meet any such changes.

v Marketing research can help bring about prompt adjustments in product design and packaging.

v It can help find out effectiveness of pricing.

v It can help find out the effectiveness of sales promotion and advertisement.

v It can help identify the strength and weakness of sales force.

v The impact of economic and taxation policies on marketing could also be known through marketing research.

In short, marketing research enables the management to identify and solve any problem in the area of marketing and help better marketing decisions.

SCOPE OF MARKETING RESEARCH

The scope of marketing research stretches from the identification of consumer wants and needs to the evaluation of consumer satisfaction. It comprises of research relating to consumer, products, sales, distribution, advertising, pricing and sales forecasting. A clear view of the scope of marketing research may be obtained by the following classification of marketing research activity.

Market Research

The purpose of market research is to gather facts about markets and the forces operating therein. The areas of market research broadly include:

Ø Study of the market size/ potential

Ø Study of the market profile

Ø Market share analysis

Ø Study of market segments

Ø Market trends

Ø Sales forecasting

Ø Study of seasonal trends

Consumer Research

The aim of this research is to develop an understanding about present and potential consumers and the level of satisfaction expected and derived by them from company’s products. The broad areas of consumer research are:

Ø Study of consumer profile

Ø Study of consumer brand preferences, tastes and reactions

Ø Study of consumer satisfaction/ dissatisfaction, reasons, etc.

Ø Study of shifts in consumption patterns.

Product Research

Ø Reviewing product line, product quality, product features, product design etc.

Ø Study on the actual uses of a given product

Ø Study on new uses of an existing product

Ø Testing of new products

Ø Study of related products

Ø Study of packing, packaging design

Ø Study of brand name/ brand mark/ its impact

Distribution Research

The purpose of this research is to identify the appropriate distribution channels for intermediaries, storage, transport problems etc. The board areas include:

Ø Assessing the general pattern of pricing followed by the industry

Ø Measuring price elasticity of demand

Ø Evaluating the pricing strategy of the firm

Advertising and Promotion Research

The purpose of this research is to develop most appropriate advertising and promotion schemes and evaluate their effectiveness. The broad areas include:

Ø Advertising copy research

Ø Media research

Ø Assessing the effectiveness of advertising

Ø Assessing the efficacy of sales promotional measures.

Sales Research

The purpose is to find out the sales potential and appraise sales performance of company’s products. The broad areas include:

Ø Testing new sales techniques

Ø Analyzing of salesmen’s training

Ø Measuring salesman’s effectiveness

Ø Study of sales compensation

Ø Analyzing methods of setting sales quota and sales territories.

Research on Competition

The purpose of this research is to find out the intensity and effect of competition to the firm. The broad areas include:

Ø Study of competitive structure of the industry and individual competitors.

Ø Study of competitors marketing strategies.

The scope of marketing research described above is only indicative and not exhaustive. Further, the above research areas are not watertight compartments. They are closely interrelated. The actual scope depends on the needs of a company and the marketing situations.

BENEFITS OF MARKETING RESEARCH

It is apparent that the scope of marketing research activity is very wide. It covers almost all aspects of marketing. The major contribution of marketing research is that it augments the effectiveness of marketing decisions. Marketing research uncovers facts from both outside and within the company relevant to marketing decisions and provides a sustainable and logical base for making decisions.

The specific contributions of marketing research to the effectiveness of the marketing programme of a firm are as follows:

1. With the guidance of research, products should be better suited to the demand and prices reasonably.

2. Specific markets having the greatest sales potentialities could be identified.

3. Research can help to identify the best sales appeal of the products, the best way of reaching the potential buyers and the most suitable timing of promotion etc.

4. Research can also help minimize marketing costs by making marketing efforts more efficient and effective.

5. Research can also find out the effectiveness of sales force management such as right selection procedure, effective training programmes, scientific compensation schemes and effective control mechanisms.

The contributions of marketing research are considerable. It facilitates both the decision-making and the operational tasks of marketing management effective and efficient and thereby contributes to consumers satisfaction and organization’s efficiency.

LIMITATIONS OF MARKETING RESEARCH

The marketing research is not without its share of limitations.

1. Marketing Research cannot provide complete answer to the problems because there are many intervening variables which are difficult to be controlled.

2. Some marketing problems do not lend themselves to valid research conclusions due to limitations of tools and techniques involved. There are many intangible and variables operating which are difficult to be measured.

3. In a fast changing environment, the data collected become obsolete soon and the research findings based on them will become little use.

4. It only provides a base for predicting future events; it cannot guarantee with any certainty their happening.

5. Marketing research involves more time, effort and high cost. But it is very often said that marketing research is cheaper than costly marketing mistakes.