Why Marketing Research Is Important ? | Market Research Concept
Why Marketing Research Is Important ? : Effective marketing research is important in every organization. It plays a major role in providing insight to the nature of marketing, business model of the product, the customers’ behavior and sales performance.
Understanding how marketing is being performed will help in defining the business strategy for the company. The research helps in defining the target audience and provides data about the advertising budget. This will help the entrepreneur to build a marketing strategy that focuses on reaching out to the targeted audience.
Marketing research can also be performed by using more sophisticated methods. These methods may include research on products and services offered, the scope of the business, audience and profile of the customers. These steps will help the entrepreneurs to create a customized marketing program that will be tailored to the target audience.
The surveys and focus groups of the market players, may reveal important information about the customers, the products they use and the lifestyle of the market. Market research companies can make a substantial contribution in determining the cost effectiveness and efficiency of the marketing activities. This will also help in coming up with the right strategy.
The survey is usually done by the research company or can be carried out by the company itself. However, the survey has the potential to give the benefits of bias to the respondents. Hence, it is always recommended to carry out the survey by the company itself. This way, they will be able to understand the problems faced by the customer and what can be done to resolve them.
Advertising agencies like to do market research and publish the results in magazines and journals. Such publications are available to the market research company. It can be used as a basis to formulate a comprehensive marketing plan.
Market research companies have their own researchers and it is the responsibility of the company to choose the most suitable one. The final reports of such companies are not as thorough as the ones that the client furnishes. If the client does not provide the complete details, the company can’t do much about it.
Expert Selection for Marketing Research
Selection of the experts is an important process and it should be done in a careful manner. Most of the time, the existing clients are selected and are charged a retainer to be used for conducting surveys. Thus, it is suggested to go through the client list and select one who is ready to do the surveys.
Experts can give valuable inputs when it comes to selection of marketing materials. Market research firms can also collect the opinions of the clients. Hence, market research consultants must be very familiar with the client list and learn about the product in-depth.
The most important thing to remember is that a report needs to be objective. Hence, the process should be as scientific as possible. The firm is supposed to ensure that the number of respondents is representative of the total market.
As an alternative to market research, some organizations have opted for data mining and models to help them in formulating the most effective methods for marketing. These methods involve the use of databases, the analysis of all kinds of data, planning and implementation of processes. The analysis of the database includes cross-checking, finding trends and analysis of the data. There are a number of companies that offer innovative approaches to marketing research. These services can be availed at a cost. With the advancements in technology, the scope for marketing research has been vastly increased