Marketing Research SS1 Marketing Lesson Note

Managers need the information to introduce products and services that create value in the minds of the customers. However 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 problems relating to the marketing of goods and services.

RESEARCH VS. MARKET RESEARCH

These terms are often used interchangeably, but technically, there is a difference.

Market research deals specifically with gathering 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 research comprises:

1. Market Research: Identification of a specific market and measurement of its size and other characteristics.

2. Product Research: Identification of 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 published sources (such as demographics).

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 helps 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 through a needs analysis. 

In a business which sells to other businesses, understanding their needs can be a little more difficult. However, this can be understood by doing surveys of focus 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, the larger the 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 how, for example, a product O 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 with that purchase is necessary. 

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 for what could be your competitive advantage.

USES OF FEEDBACK IN MARKETING RESEARCH

1. It can be used to change product features.
2. Packaging can be improved from the feedback obtained.
3. Price level can be reduced or increased.
4. Advertising can be intensified.
5. Sales promotion can be introduced.
6. The product can be repositioned.
7. Channels of distribution can be changed.
8. Some channel members can be dropped.
9. Salesmen can be motivated to perform more.
10. A company can extend its marketing activities to international markets.