Meaning of Marketing Research
Marketing research may be defined as the mechanism which helps in linking the customers, producers and several other end-user to the marketer and help in finding and communication of all required information. It is the system that leads to the collection of data, analysis of data and then interprets the required information to the users.
Marketing research plays an important role in studying consumer behaviour and making adjustments according to the change in the various elements of marketing mix viz. promotion, place, price, and product. It is a 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. These all information acquired through this process enables in the smooth functioning of the marketing process.
Need and Advantages of Market Research
Easy Detection of Market Problems and Opportunities
The first and primary advantage of marketing research is that it give complete information about the market. It give details regarding the marketing opportunities about the product which decides its success or failure. Apart from this it also helps in identifying the competitive nature of the market, whether customers are satisfied or not, the sales level of the company and also the channel of distribution used.
Helps in Marketing Strategies Formulation
Doing business today is a very difficult task as it requires to conduct deep marketing research acquiring knowledge. Also, today business is not conducted only at a local level but at a global level which involves a very difficult task of managing a large number of customers and various channels used for distribution. And above all, it is a very difficult task to predict people needs. The marketing information gathered through marketing research helps in the easy formulation and implementation in pre-decided strategies.
Understanding of Customer Needs
Today the success of every business depends on its customers and therefore nowadays marketing activities are customer targeted. Marketing research play a very effective role in collecting the information regarding the customer wants which help in designing the product accordingly so that the customer need and wants can be satisfied easily.
Improve Sales Performance
Every company performance is measured by its sales level. Sales level clearly depicts the performance level of the company in the market. Marketing research helps in understanding the sales territories and analyzing the sales force effectiveness. And if any problem is detected it helps in taking actions accordingly thereby helps in increasing the sales volume.
Helps in Launching of New Products
Marketing research plays a very effective role in determining the success or failure of the new product to be launched in the market. It facilitates and makes it possible for testing of the upcoming product in a market on a small scale and also help in getting the response of the customers regarding the new product. So it basically lowers the risk involved in the launching of a new product.
Helps in Evaluating The Export Potential
Nowadays business is not conducted at a local level only but at a world level. Foreign trade serves as the best source of earning a large amount of income. But doing business on an international level requires conducting a large amount of research and gathering information.
Marketing research helps in evaluating the export potential of the company product. It aims at collecting information from customers from different countries which helps in predicting export potential.
Support the Management in Decision Making
Managers at the top-level require all relevant information before making any decision. Unless and until all required relevant information is supplied to the management team their functions are useless. Marketing research plays a very effective role in the supply of all current and accurate information to the management team.
Disadvantages of Market Research
Market Research Takes Time
Market research takes time to analysis the new trends and fashion. Sometimes market research fails to analysis trends which gives negative response to the company.
Research Is Expensive
Market research is an expensive process, it takes time and huge money to analysis new trends of the industry.
Modern time is changing time, fashion and trends change over the night. So, market research fails to understand fashion and trends of the industry.