Meaning of Marketing Research
Marketing research is a process of analyzing and conducting research about the market to understand market trends. It involves the proper collection, analysis, and interpretation of information regarding market conditions.
Marketing research is mainly conducted to identify the changes in preferences and behavior of customers arising from 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 helps in finding and communicating all required information.
Marketing research plays an important role in studying the consumer behavior. It is a very efficient tool for 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 them in developing products of their use so that competitive advantage over other competitors can be maintained in the market.
Application of Marketing Research
Marketing research helps business in estimating the demands of customers. It through various forecasting techniques help business in predicting the right quantity of goods needed and then accordingly producing it.
Marketing research enables business in analyzing their sales through examining the sales report. It tells which goods are sold well, whether the sales force is working effectively or not, which inventory should be stock more and what should be the production capacity.
Marketing research has an efficient role in determining an effective and appropriate advertising medium. It analyses various aspects of advertising like themes, appeals, headlines, communication clarity, attention value etc. according to the advertising goals of business.
Marketing research enables in developing the optimal position of a brand or service in the market. It collects and supplies all relevant information about potential customers to business and this way helps in positioning the products among customers in better way.
This process collects and communicates all facts about market to companies. It is the medium through which business is able to acquire key attributes about their potential customers which helps them in creating different target market groups.
Marketing research is a significant tool for planning and developing of products. It enables business in designing the right product by providing all information regarding new ideas in market, testing the new product and evaluating the current product mix to find out the changes that need to be brought in it.
It helps business in framing proper price strategies for setting right price of its products. Marketing research collects all information regarding competitors pricing strategies, customer’s price expectations and various factors affecting the pricing decisions.
This research aims at choosing the most appropriate distribution channel to deliver the products to customers in less time. Marketing research analyses and identifies the potential distribution channel, chooses efficient market intermediaries, reduces the distribution cost and evaluates the performance of the distribution channels.
Customer Satisfaction Research
It means interacting with customers and taking information about their shopping experience with brand. Marketing research takes customers feedback and focuses on their perception regarding the company products.