Process of Marketing Research
In general, for larger enterprises, the process of marketing research comprises the following six steps,
Step 1: Defining Research Problem
In the beginning, researchers must define the research problems keeping in mind the objectives of research. Defining research problems include describing the information needed and use of that information in decision-making
Step 2: Developing an Approach to the Defined Problem
For developing an approach to tackle the research problems researchers should first understand the need for research. Accordingly, they are required to plan out a theoretical framework for research. Further, analytical models, research questions and hypothesis for testing have to be developed.
Step 3: Formulating Research Design
A research design is a plan of how to conduct a research. It outlines the procedures to be carried out for the success of a research project in solving a research problem. It also suggests hypothesis testing methods and alternative solutions to the research problem.
Step 4: Collection of Data
Once the data collection methods are decided, data collection team is organized, trained and supervised. The data collection team follows the guidelines of research design and uses data collection methods that are regularly evaluated to reduce errors in data collection.
Step 5: Preparation and Analysis of Data
The compiled crude data has to be edited and corrected. Data preparation involves coding and transcription. Data is also analyzed and verified
following the guidelines of the research design. Finally, information is generated that aids managers in understanding the research problem and its possible alternative solutions.
Step 6: Preparation of Report and Presentation
Finally, when the research is complete, researchers document the actual process carried out for the research. Research results are formatted for easy understanding of the decision makers.
Presentations are made about the research problems and the findings are discovered. It involves drawing tables, charts, graphs, ratios and other tools that simplify the information to support decision- making.
Importance of Marketing Research
The significance of marketing research in formulating marketing strategy can be understood from the following points,
1. New Product Development
Marketing research is needed for taking decisions about new product development. A decision whether to introduce a new product into the market or not is taken based on the information gathered from marketing research.
2. Customer Expectations and Satisfaction
Marketing research plays a significant role in determining the needs, wants and expectations of customers and how effectively these expectations are met by the company.
3. Analysis of Competitors
For effective marketing management, the activities and strong and weak points of the competing firms have to be assessed effectively to determine their effect on the company’s strategies.
4. Distribution Channel Decisions
Before taking any decision regarding the channel types, channel design, etc., the marketers conduct the research on the existing distribution channels and the present practices and procedures followed in the company.
5. Market and Market Segments
Marketing research assists the marketers in determining the customer needs and wants, outlining the individuals who possess those needs and identifying the significance of the need in different market segments. Depending upon the research surveys conducted by the marketers, the customer database is prepared, which helps in segmenting the
6. Marketing Mix
Marketing research helps in taking the decisions relating to “marketing mix”. Such as product, price, place and promotion. Apart from the above points, Marketing Research is also used for determining the effectiveness of product, pricing, distribution and promotion activities of the company in the market.