What is marketing all about?
Marketing is the vital part of any business. Basically marketing is the bridge between customer and company (product). No single business is running in this world without marketing and I don't know about other galaxies. Marketing is all about taking customer's needs and necessities in concern with his prospective and creating value for him. The value will be created with the help of 4 basic P's products itself, favorable price of that product, convenient distribution and placement of that product and promotional activities about that product.
What is Market Research?
Now getting a clear concept of marketing, we have a question that how market research is important for business. Let me explain it further. As I have already noted that marketing is all about the customer so knowing about a customer is a quite difficult task. This task must have to do strategically. Understanding about target customers’ needs deep systematic research. What type of merchandise or services to our target audience demands? What they actually want and how they want? Is there any other competitor's product satisfying customer? What are the internal and external environmental factors which can affect our target audience? Deep, thoroughly and good market research helps companies to create possibilities to go for the best interest of its clients. The link between product and customer is marketing and market research is the basic step of powerful connection.
Must Read: Reverse Marketing: Another view of Marketing
Market Research Is an Essential Management Tool
Previous information shows us that market research is the basic step to go for customer oriented business. Management needs to know how well they have collected data about their target customer and how they can use this data in the best interest of company. All the businesses are doing their operations for the sake of earning profit and focusing customers’ needs help them to engage more customers for the longer time period. Market research provides management deep and detailed information about decisive factors that have a material impact on the target customers and existing marketing strategy. Market research helps management to make the positive changes required for better results through selecting a proactive approach.
[post_ads] Customers are a real human and they have strong influencing nature that tries to change the customer's mind accept the external changes. Collecting one time data is not efficacious. This is an ongoing process, which means management must keep focus on it in regular basis. Multinational companies have their separate department to operationalize this basic step effectively.
How should the research be done?
Just like other researches, market research also divided into two types; primary research and secondary research. Going with the primary research, we need to compile all the basic data directly from our target market and then convert it into favorable results. In primary research process, company directly concern with customers and then analyze that data by its own self. Primary research is time consuming and costly task. Secondary research consists of the process of gathering already finalized and published data to improve a "company database". This data can be purchased from any research organization. Secondary research always conduct when company don't have necessary capabilities and lack of budget. Disadvantage of secondary research is that every competitor can access that research. Different objectives can be achieved through secondary market research i.e. who is your competitors? What are the performance benchmarks in external market? And also determine the most profitable segment the company should target.
I am not talking about how this research to be done because this is impossible to cover every prospective of this topic. Regarding to all restrictions, necessary information must be opened. In primary market research, data can be collected through sales reports, sales person's questionnaires, and online surveys, interviews and registrations process. Then collected data analyzed through different statistical tools.
In the last, again keeping focus on that market research cannot be done without gathering right data. Management must identify the right sources of collecting data. One more thing that most of people think that conducting market research is costly task and benefits are very low. Keep in mind that market research helps you always. If you research the market and you analyze that market is favorable for you and have good potential, you are hell of lucky person. But after market research if you found that market is unfavorable for you then you are also lucky because you just save yourself with upcoming huge loss that you might face after failure of your product in the market.
Got any questions? Or maybe, have something to add? Please leave a comment below and tell us what you're thinking. Cheers :)