The most important task of a marketer is to get the right product at the right place with the right price to the right person. Besides, it was also necessary to go back and find whether the consumer is getting optimum satisfaction so that the consumer remains loyal. These aspects made it imperative for marketers to conduct marketing research. The following points explain the need for and importance of marketing research.
It helps in identifying new market opportunities for existing and new products. It provides information on market share, nature of competition, customer satisfaction levels, sales performances and channel of distribution. This helps the firms is solving problems.
Today, markets are no more local. They have become global. Manufacturers find it difficult to contact customers and control distribution channels. Competition is equally severe. The consumer needs are difficult to predict. Market segmentation is a complicated task in such wide markets. The marketing intelligence provided through marketing research not only helps in framing but also in implementing the market strategies.
Marketing has become customer-centric. However, large-scale production needs intermediaries for mass distribution. Due to the prevalence of multi-channels of distribution, there is an information gap. Marketing research helps in collecting information on consumers from structured distribution research and helps in making marketing customer-oriented.
In an era of micro- rather than mass-marketing, communication plays a vital role. Marketing research uses promotional research to study media mix, advertising effectiveness, and integrated communication tools. Research on such aspects will help in promoting effectively a company’s product in the market.
Marketing research is used to analyze and evaluate the performances of a company within a market. It also studies the effectiveness of a sales force. It helps in identifying sales territories. Such information helps the companies in identifying areas of shortcoming in sales. It also examines alternative methods for the distribution of goods.
The most challenging task for any production manager is to keep optimum levels of inventory. However, production is undertaken in anticipation of demand. Therefore, the scientific forecast of sales is required. Marketing research helps in sales forecasting by using market share method, salesforce estimate method, and jury method. This can also help in fixing sales quotas and marketing plans.
Marketing research is used to study and find out the existing brand position. It finds out the recall value of brands. It explores the possibilities of brand extension or prospects of changing existing brand names. The main purpose of marketing is to create brand loyalty. Marketing research helps in developing techniques to popularize and retain brand loyalty.
Marketing research helps in testing the new products in one or two markets on a small scale. This helps in finding out consumer responses to new products and develop a suitable marketing mix. It reveals the problems of the customers regarding new products. Thus, it controls the risk involved in introducing a new product.
The development of transport and communication has helped in globalization and digitalization of world trade. This has helped in boosting the growth of international markets. Marketing research helps in conducting market surveys for export. It. collects information on the marketing environment prevailing in a country. By collecting data on consumers from different countries, it indicates export potentials.
Marketing research plays a vital role in the decision-making processes by supplying relevant, up-to-date and accurate data to the decision-makers. Managers need up-to-date information to access customer needs and want, market situation, technological change and extent of competition.