Meaning of Marketing Research
Marketing research is a process of analysing and conducting research about the market to understand trend of the market. It involves proper collection, analysis and interpretation of information regarding market conditions. Marketing research is mainly conducted to identify changes in preferences and behaviour of customers arising from a change in market mix elements viz. promotion, place, price and product. It may be defined as the mechanism which helps in linking the customers, producers and several other end users to the marketer and help in finding and communicating of all required information.
Marketing research plays an important role in studying consumer behaviour. It is very efficient tool for the marketers to understand the trends of the market that mainly consists of information relating to new product launch in the market, trends in consumer demand, pricing strategy of the competitor and available close substitutes of the product.
Through marketing research companies easily identify what their customers want which helps in developing the product of their use so that competitive advantage over other competitors can be maintained in the market. It helps in finding out the target market and interacts directly with potential customers to get valuable feedback and suggestion. These all information acquired through this process enables in smooth functioning of the marketing process. Objectives of Marketing research is described in detail below:
Objectives of Marketing Research
Identify Customer Needs and Expectations
Marketing research helps business in understanding the needs and wants of customers. Proper knowledge of what customer want is necessary to deliver the products as per their expectations. Marketing research involves reaching out to customers and interacting with them to understand their demands. It helps in developing the right product as per customer requirements.
Minimise Marketing Costs
Marketing research process monitors and controls all marketing programmes. It performs a proper analysis and research of the market before formulating various marketing policies. It helps in choosing the efficient means of advertising and distributing the goods to reduce the marketing expenses. Marketing strategies used by competitors are also analysed through this process to design better plans for marketing.
Setting up Proper price policy
Deciding a proper price is a crucial decision for every business organisation. Pricing policy should be such that it should neither adversely affects the customers nor the organisation itself. Market research conduct research about price policies adopted by several other competitors in the market. It collects a considerable amount of information regarding what competitors are charging and also what customers are willing to pay. This all helps in deciding optimum prices for different products.
Finds Target Market and New Opportunities
Identifying potential customers and new opportunities are important for grabbing the market. Marketing research explores the wide and large market and find out the opportunities for new products by recognising the unfulfilled needs of customers.
It finds and gathers collection about new areas where its products can be sold. Different information about people of that area like their taste and preferences, purchasing power, culture and tradition is collected and analysed to target that area.
Recognise Deficiencies in Product
Marketing research helps the companies in identifying the deficiencies in their products. Timely identification and removal of faults from company products is essential to retain its image in the market. Marketing research process involves interacting with customers and takes their valuable feedback and suggestion.
These suggestions and feedback from customer help the customers in improving their product quality. Marketing research also informs of any technological changes in market to business so that accordingly changes can be made timely.
Product Positioning in Market
Positioning of product among targeted customers is an important task. It is the means through which customers are attracted and the market for the product is developed. Marketing research process collects all relevant information about the targeted audience.
This information helps in designing a company offers an image that may attract customers and have a long-lasting effect on their mind. Positioning strategy is designed differently for each product that may attract large customers. These strategies should clearly denote the main features of products.