Marketing Aptitude - Marketing Research
Category : Banking
Marketing research has two words viz marketing and research. Marketing means buying and selling activities and research means a systematic and complete study of a problem done by experts. Thus, we can say that marketing research is a systematic method of collecting, recording and analysing of data, which is used to solve marketing problems. It is a special branch and soul of marketing management. It is widely used by manufacturers, exporters, distributors and service organizations.
- Characteristics of Marketing Research
- Marketing research has a very wide scope which includes product research, packaging research, sales research, etc.
- It is a scientific method of solving the marketing problems.
- It is an important tool for decision-making.
- It is a commercial intelligence-gathering activity.
- It is a component of Marketing Information System (MIS).
- It reduces the gap between the producers and the consumers.
- It gives much importance to accurate data collection and its critical analysis.
- Elements of Marketing Research
- Market research
- Sales research
- Product research
- Packaging research
- Advertising research
- Business economic research
- Export marketing research
- Types of Marketing Research
- Product analysis
- Market analysis
- Distribution analysis
- Competition analysis
- Consumer research
- Sales analysis
- Motivational research
- Advertisement research
Methods of Marketing Research
Methods of marketing research used to collect data regarding marketing are as follows
This method is frequently used in quantitative marketing research and social research. They are a valuable method of collecting a wide range of information from a large number of individuals often referred to as respondents.
It is a research technique in which a researcher observes the results of changing on or more marketing variables, while keeping other variables. Experimentation involves establishing a controlled experiment or model that stimulates the real world marketing situation being investigated.
Through this method, marketing specialists are able to identify actions and watch our subjects respond to various stimuli. For a small business, observational marketing research is one of the most simple ways that one can find out many things about their customers and clients.
- Steps in Marketing Research
- Define the problem and research objective.
- Analysis of the problems.
- Determine the information needed.
- Determine the sources of information.
- Decide the research methodology to be adopted.
- Tabulate, analyses and interpret data.
- Prepare the research report.
- Follow up the study.
- Needs of Marketing Research
- Marketing research provides an opportunity to the enterprise to start the production of new product.
- It explores new uses of the products of the enterprise.
- It provides important information which help the enterprise in deciding its marketing policies, strategies and programme.
- It helps the enterprise in the selection of particular channel of distribution for distributing its products.
- It collects and analyses the data in respect of products and services offered by the competitors to the consumers.
- It makes a thorough study of the demand of products of enterprise.
- As marketing research helps in making sales forecasts, the enterprise can establish harmonious adjustment between demand and supply of its products.
- It makes an intensive and extensive search of new markets for products of the enterprise.
- Limitations of Marketing Research
- Marketing research is a process involving heavy expenditure. So, it can be adopted by the enterprise of large scale only.
- Marketing research is the process involving the need of sufficient time. If time is short the research scholar has to depend upon secondary data, the reliability of which is always doubtful.
- The success of marketing research depends to a great extent, .on the ability, efficiency and experience of research scholar.
- If the research scholar is biased to the problem, the results of such research will not be reliable and the purpose of marketing research cannot be served.
- Rules to Use Marketing Research
- Different rules to use marketing research are as follows
- Product Search new products, their use and their properties.
- Consumer Search information about the consumers that who are they? Where do they reside? etc.
- Markets and their Ability Study about the place and ability of the markets.
- Sales Policy Study about the regional division.
- Packaging Check the design and appropriate package.
- Dealers check the manners of their business.
- Officer Gather facts about the position of a particular person.
- Competition Decide about the weakness of the position of each competitor.
- Decision regarding product diversification can be taken after research of products and services.
- No business and industrial enterprise can achieve its marketing objectives in the absence of advance research.
- Low response rate is a problem associated with online surveys method.
- Consumer analysis involves the detailed study of the popularity of product among consumers.
- The research which is basically concerned with establishing cause and effect relationship, is called casual research.