According to American
Marketing Association, “Marketing Research is the function that links the
consumer, customer and public to the marketer through information-information
used to identify and define marketing opportunities and problems, generate,
refine and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process.”
Marketing Research is
systematic problem analysis, model building and fact finding for the purpose of
important decision making and control in the marketing of goods and services.
Marketing Research is
a well-planned, systematic process which implies that it needs planning at all
the stages. It uses scientific method. It is an objective process as it
attempts to provide accurate authentic information. Marketing Research is
sometimes defined as the application of scientific method in the solution of
marketing problems.
Marketing Research
plays a very significant role in identifying the needs of customers and meeting
them in best possible way. The main task of Marketing Research is systematic
gathering and analysis of information.
Before we proceed
further, it is essential to clarify the relationship and difference between
Marketing Research and Marketing Information System (MIS). Whatever information
are generated by Marketing Research from internal sources, external sources,
marketing intelligence agencies-consist the part of MIS.
MIS is a set of
formalized procedures for generating, analyzing, storing and distributing
information to marketing decision makers on an ongoing basis.
While Marketing
Research is done with a specific purpose in mind with information being
generated when it is conducted, MIS information is generated continuously.
MIS is continuous entity while Marketing
Research is a ad-hoc system.
While in Marketing Research information is for
specific purpose, so it is not rigid; in MIS information is more rigid and
structured.
Marketing Research is
essential for strategic market planning and decision making. It helps a firm in
identifying what are the market opportunities and constraints, in developing
and implementing market strategies, and in evaluating the effectiveness of
marketing plans.
Marketing Research is
a growing and widely used business activity as the sellers need to know more
about their final consumers but are generally widely separated from those
consumers. Marketing Research is a necessary link between marketing decision
makers and the markets in which they operate.
Marketing Research
includes various important principles for generating information which is
useful to managers. These principles relate to the timeliness and importance of
data, the significance of defining objectives cautiously and clearly, and the
need to avoid conducting research to support decisions already made.
Marketing Research is of use to the
following:-
Producers
To know about his product potential in
the market vis-à-vis the total product;
New Products;
Various brands;
Pricing;
Market Structures and selection of
product strategy, etc.
Business and Government
Marketing Research helps businesses and
government in focusing attention on the complex nature of problems faced by them. For example:
Determination of Gross National
Product; Price indices, and per capita income;
Expenditure levels and budgeting;
Agricultural Pricing;
The economic policies of Government;
and
Operational and planning problems of
business and industry.
Market
Research Agencies
Marketing Research is being used
extensively by professionals to help conducting various studies in Marketing
Research. Most prominent agencies being:-
Linta India Ltd;
British Market Research Bureau (BMRB);
Hindustan Thompson Associate Ltd;
eSurveysPro.com;
MARG
Managers
Following are the main limitations
of Marketing Research:
Marketing Research (MR) is not an exact
science though it uses the techniques of science. Thus, the results and
conclusions drawn upon by using MR are not very accurate.
The results of MR are very vague as MR is
carried out on consumers, suppliers, intermediaries, etc. who are humans.
Humans have a tendency to behave artificially when they know that they are
being observed. Thus, the consumers and respondents upon whom the research is
carried behave artificially when they are aware that their attitudes, beliefs,
views, etc are being observed.
MR is not a complete solution to any
marketing issue as there are many dominant variables between research
conclusions and market response.
MR is not free from bias. The research
conclusions cannot be verified. The reproduction of the same project on the
same class of respondents give different research results.
Inappropriate training to researchers can
lead to misapprehension of questions to be asked for data collection.
Many business executives and researchers
have ambiguity about the research problem and it’s objectives. They have
limited experience of the notion of the decision-making process. This leads to
carelessness in research and researchers are not able to do anything real.
There is less interaction between the MR
department and the main research executives. The research department is in
segregation. This all makes research ineffective.
MR faces time constraint. The firms are
required to maintain a balance between the requirement for having a broader
perspective of customer needs and the need for quick decision making so as to
have competitive advantage.
Huge cost is involved in MR as collection
and processing of data can be costly. Many firms do not have the proficiency to
carry wide surveys for collecting primary data, and might not also able to hire
specialized market experts and research agencies to collect primary data. Thus,
in that case, they go for obtaining secondary data that is cheaper to obtain.
MR is conducted in open marketplace where
numerous variables act on research settings.
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