What is marketing research why is

The same goes for existing businesses who wish to expand their reach in other markets or simply increase their profits in the current one.

What is marketing research why is

Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economyand it aims to understand the effects and comparative success of marketing campaigns.

Role[ edit ] The purpose of marketing research MR is to provide management with relevant, accurate, reliable, valid, and up to date market information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information.

BREAKING DOWN 'Market Research'

Sound decisions are not based on gut feeling, intuition, or even pure judgment. Managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control.

These decisions are complicated by interactions between the controllable marketing variables of product, pricingpromotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes.

Another factor in this mix is the complexity of consumers. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers.

What is marketing research why is

In the absence of relevant information, consumers' response to marketing programs cannot be predicted reliably or accurately.

Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers.

However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research.

The role of marketing research in managerial decision making is explained further using the framework of the DECIDE model. History of marketing Evidence for commercial research being gathered informally dates to the Medieval period.

Inthe German textile manufacturer, Johann Fuggertravelled from Augsburg to Graben in order to gather information on the international textile industry. He exchanged detailed letters on trade conditions in relevant areas. Although, this type of information would have been termed "commercial intelligence" at the time, it created a precedent for the systemic collection of marketing information.

During this period, Daniel Defoea London merchant, published information on trade and economic resources of England and Scotland.

Defoe was a prolific publisher and among his many publications are titles devoted to the state of trade including; Trade of Britain Stated, ; Trade of Scotland with France, and The Trade to India Critically and Calmly Considered, - all of which provided merchants and traders with important information on which to base business decisions.

Produce, household goods and tools were produced by local artisans or farmers with exchange taking place in local markets or fairs. Under these conditions, the need for marketing information was minimail. However, the rise of mass-production following the industrial revolution, combined with improved transportation systems of the early 19th-century, led to the creation of national markets and ultimately, stimulated the need for more detailed information about customers, competitors, distribution systems and market communications.

A study of the German book trade found examples of both product differentiation and market segmentation as early as the s. InAmerican advertising agency, N. Parlin published a number of studies of various product-markets including agriculture ; consumer goods c.Marketing works on the bases of a lot of marketing research data derived for the research work, analyses, marketing research projects, etc.

It does not work . Research which includes all forms of market, opinion and social research and data analytics, is the systematic gathering and interpretation of information about individuals and organisations.

Market research is an effective tool to assist your business planning. It is about collecting information that provides an insight into your customers thinking, buying patterns, and location. In addition, market research can also assist you to monitor market trends and keep an .

What is marketing research why is

Marketing: Why is it Important? For a company or institution to grow, it must build strong customer relationships.

Marketing Research Process: 5 Reasons to Prioritize Research

That’s where an effective integrated marketing plan comes in. Market research is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps budding entrepreneurs make wise and profitable business decisions.

Market research is the process of assessing the viability of a new good or service through research conducted directly with the consumer. This practice allows a company to discover the target.

Market research | Small Business