OMTEX AD 2

NATURE OF MARKETING RESEARCH?

Meaning

Marketing research is a systematic approach to solve marketing problems. The American Marketing Association defines marketing research as: “The systematic gathering, recording, and analyzing of data about problems relating to marketing of goods and services.”

The Nature of Marketing Research

The nature of marketing research is briefly stated as follows:

  1. Systematic process: Marketing Research is a systematic process to identify and to solve problems. The process of marketing research involves the following steps:
    1. Identify the marketing problems.
    2. Create the research design.
    3. Collection of data through primary and secondary sources.
    4. Processing of data.
    5. Analysis of data.
    6. Implementation of data.
    7. Finally, review or follow up of action taken.
  2. Scope: Marketing Research attempts to solve problems in a wide range of areas. The problem relates to various areas of marketing such as:
    • Product Research
    • Promotion Research
    • Pricing Research
    • Place Research
  3. Continuous in Nature: Marketing research is continuous in nature. As long as the firm exists, there is a need for marketing research; to overcome certain marketing problems that arise during the existence of the firm.
  4. Applied Research: Marketing Research is conducted to solve specific problems of commercial importance. Since marketing research is subject to commercial considerations, it is not a basic or fundamental research but an applied research which is used to solve specific problems.
  5. Bridges Company-Customer Gap: Marketing Research bridges the gap between the producers and the consumers. The company comes to know more about its consumers—their likes and dislikes, tastes, preferences, and buying patterns.
  6. Company Objectives: Due to marketing research, the company is in a position to achieve its objectives. Marketing research enables a firm to solve marketing problems. The resolving of marketing problems enables the company to achieve its objectives in a profitable manner.
  7. Marketing mix decisions: Marketing Research provides necessary information to arrive at appropriate solutions to marketing problems. Effective marketing mix elements like packaging, pricing, promotion, and distribution enable the firm to achieve marketing objectives.
  8. Methods of Data collection: Marketing research data can be collected with the help of various methods such as:
    • Survey/interview method
    • Observation Method
    • Experimentation method (e.g., R&D, product trials).
  9. Suffers from certain limitations: Although marketing research is beneficial to the company and the customers, it suffers from certain limitations, such as: limitation of time, limitation of funds, limitation of data collection and data analysis techniques, and the problem of bias (partiality) on the part of the respondents and of the interviewers, and so on.

Difficult Words & Meanings

  • Systematic: Done or acting according to a fixed plan or system; methodical. (Easy: Organized, step-by-step)
  • Gathering: Bringing together or collecting. (Easy: Collecting)
  • Analyzing: Examining something methodically and in detail, typically in order to explain and interpret it. (Easy: Studying carefully)
  • Relating to: Concerning or connected with. (Easy: About, connected to)
  • Scope: The extent of the area or subject matter that something deals with or to which it is relevant. (Easy: Range, area covered)
  • Primary sources (of data): Original, first-hand accounts or raw data collected directly for the research. (Easy: First-hand information)
  • Secondary sources (of data): Information that was collected by someone else for a different purpose but can be used for the current research. (Easy: Second-hand information, existing data)
  • Implementation: The process of putting a decision or plan into effect; execution. (Easy: Putting into action)
  • Continuous: Forming an unbroken whole; without interruption. (Easy: Ongoing, non-stop)
  • Applied Research: Scientific study and research that seeks to solve practical problems. (Easy: Practical research to fix real issues)
  • Commercial considerations: Factors related to business, profit, and market activities. (Easy: Business-related factors)
  • Fundamental research (Basic research): Research carried out to increase understanding of fundamental principles, not necessarily with immediate practical application. (Easy: Research for knowledge itself)
  • Preferences: A greater liking for one alternative over another or others. (Easy: Choices, what people like more)
  • Marketing Mix: The combination of marketing tools (often referred to as the 4 Ps: Product, Price, Place, Promotion) that a company uses to achieve its marketing objectives. (Easy: Key elements of a marketing plan)
  • Respondents: People who reply to something, especially a survey or questionnaire. (Easy: People answering questions)
  • Bias: Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair. (Easy: Unfair preference, one-sidedness)
  • Limitations: Restricting rules or circumstances; a constraint or weakness. (Easy: Drawbacks, shortcomings)
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