Importance of Marketing Research
Marketing research is a conceptual management process that allows the movement of goods and services to the consumers of these goods and services. It is very smart coordination of the four elements called the 4 P’s, these elements are important to understand marketing research better. They are listed below to make your concept clear.
Marketing Research – Now before we start, think how much time and money do you spend on every activity of your business weather manufacturing a product or giving service. The money, of course, might be as per the set budget and time might be planned, however, how much time and money you spend distributing or selling your product and services.
Well, sales are the ultimate way of minting profit so I am sure you spend both time and money reasonably in pushing on selling your product and services, right? Well if you are not you should think about it.
Your ultimate marketing research goal is to sell your products and your services, if you sell well you increase your turn over and that what will increase your profit. So now can I ask you this question the other way round, ‘Why do you think spending on selling your products and services is not important?Image source: pixabay.com
What is spending on selling your products and services?
The spending can be by having a sales team and a marketing research team or having both the teams in maximizing your sales. Well to most people sales and marketing research mean the same; however, both the terms are not the same they are very strongly intertwined.
Sales are a result of the right marking research. Using the right market research can increase the sales of your goods and services and increase your business. Now that’s what the importance of marketing research in business for.
The 1st step is very clear you need to identify, select and develop the product. Companies do not have a single product they do have a number of them and yet keep launching new ones to increase their sale and revenue.
So they make sure they identify what product is in demand, select the right product and then finally develop the product. Product here is the goods as in physical goods and services both.
The second most important element is the price of the product. You wouldn’t want to underprice your product as it will take a toe on your profit, it will hit your profit margins.
You cannot keep your product price high, higher than your competitor’s products as it will affect your sales. Your need to price your product just right so that you can balance your sales and your profits both.
The third element is the place the area of the customers you would want your product and service to reach to. You need to choose the right distribution channel to get to the right consumer reaching to the right consumers through distribution channel increases both your sales and your profit margins
4th P—Promotional Strategy
Once the other elements are clear now is the time to strategize your promotional activities depending on the other elements. The right promotional activities are decided and then implementation is done on the basis of a number of data and reports. This implementation brings you results in the form of your profits and earnings.
The definition of marketing research explains a lot. In business terms the marketing research makes sure that it fulfills customer need to keep the customer content about the money spent on the product and services that he has exchanged for cash, unlike sales: selling is only concerned about using tact and different marketing research techniques of making customers exchange cash for the exchange of products and services you are asked to sell, irrelevant of customer needs and satisfaction.
Marketing does not get the customer to pay for your products and services without checking on the relevance of the value of the goods and services; however, it does create a demand for the products and services to be sold in the right direction and amongst the right audience.
Let us still look at it closely because I am so sure the relevance of marketing research can still be elaborated further.
Top 10 important reasons why marketing research matters
So now let us look at the 10 important reasons why marketing research matters.
1. Consumer-focused research
The world and your country have people in billions. To market correctly you need to focus on the right lot of people, you cannot sell or market a solitaire or precious jewellery to the domestic workers, focusing on the higher middle-class people and the population in the upper or the rich class is much beneficial for precious jewellery business.
Similarly, different marketing research companies have a different segment of products and services and their focus of sales vary with the class of people they come across. Marketing research focuses on the requirement and the satisfaction of the consumer.
One simple law of the corporate world “your CUSTOMER is the KING of the market”, to stay in business you need to keep in touch with the king, through various marketing research. You must conduct regular meetings to understand today’s consumer and their requirements.
Time has changed and so have people (your customer). You have to keep your customer happy that you need to know them.
2. Marketing research directs you
Marketing works on the bases of a lot of marketing research data derived from the research work, analyses, marketing research projects, etc. It does not work on simply pushing its product on a customer, unlike sales. Marketing a product and then using the sales team for selling the same gives you better results, as marketing the product has already started to create demand for product and services in a focused lot of customers.
Marketing researchers can guide the requirement of the consumer and what is really, really important for him. Basis requirement of the customer the company focuses and prioritize the sales of its products and services effectively. Marketing research can guide you through and direct you to both the short-term as well as the long-term requirement of your focused customer.
3. Helps you to the most profitable growth opportunities
Everyone in business is out there to make profits; profits are your gross turn over minus your expenditures. Now how is it that you can maximize your profits? Yes, business, sales, service, every team wants to maximize profits for their business.
To maximize your profits you need to cut down on the expenditure of the marketing research organization. The market researcher helps you collect data, strategize and analyze the same so that you can maximize you can focus on the right ways of doing business to cut down on the expenditure and ultimately maximize your profits.
4. Creates a brand name and a brand position in the market
Marketing research focuses on both the shot and the long term requirement of the customer by doing so the market researcher creates requirement of the products for both short as well as long term for the customer. The brand name of the product gets popular giving it recognition and a position.
Unlike sales, where the focus is only selling the product and service for that moment, marketing research focuses on customer needs and requirement and suggest a products accordingly by not pushing a product. When the customer requirement is focused on you develop a relationship with the customer, a long term relationship, helps him trust you and he does comes back to you for your products and services.
5. Gives you an understanding of your competition
Well knowing your customer is very important, in fact the most important part of your business; however you have to know the competition your business is going to face from day one. Archiving a stage of monopoly is close to impossible in today’s time; you definitely have competition in any business you take up.
Hence it is very important to who your competitors are, what are they selling, what is their focus, what is their strategy, what is their position in the market that you want to sell in, etc. A market researcher gets you the data that gives to the answers to all the marketing research questions you must have an answer to before you try to crack the market.
6. Helps reducing your risk
Marketing Research and analyses collects a lot of data from the market from the king of the market themselves. Data is never wrong it will never give you a wrong picture of what is the requirement of your customers and when.
This helps you in producing and selling the required quantity only. It will minimize wastage saving you the risk of loss. Reducing risk of loss is very important as it can affect you business. Continuous loss in business can also bring you to a point where you might have to shut down your business or leave the market.
7. Increases decision making abilities
Marketing research works only on the basis of research, research with customers, their feedbacks, their requirements, their expectations, the changes that they would want in a given product. Research gives birth to data, marketing researchers and analyst use this marketing research data in helping the management make decisions about the products and services, new introductions or changes in the existing one and how can they sell it better.
8. Creates future customers
As discussed earlier unlike sales, marketing research does not focus on selling only today for archiving target of the day or target of the month; it focuses on creating a customer base for today as well as tomorrow. The base is created by creating a relationship with the customer by know his likes and dislikes, by being in touch with the king of the market on regular basis in some form or the other.
You can use the marketing research survey team to go out there in the market and talk to the customers, or you can use the social media to keep in touch with the customer, the television, the radio and there are so many more options.
9. Correct promotional activities
Many people believe giving an advertisement in the new paper or the television or the radio is a very good way of marketing research your goods and services. By doing so are you and your market researchers focusing on the correct audiences.
Are you putting your message across into the customers correctly, are you able to explain to them how will you fit into their lives correctly and how will you be able to affect their lives.
Promotional activities are correct of put across correctly if your audiences understand what you want to convey to them. Use whatever mean you want to use make sure you are able to communicate what you actually want to communicate to the right audience.
10. Maximizes innovation
You are in the market today and you are not using innovation appropriately, absolute failure. You want to help your brand grow you must use innovation and innovative marketing research ideas. Innovation helps market researchers of your company maximize growth opportunities and take your brand name to a different growth level.
It not only helps promoting the products and services it also designs your product correctly, designing your websites. It also helps you maximizing benefits and features by addressing the correct audience and fulfilling their needs and requirements.
The time has changed and changed time has made the customer the king of the market, so if the customer decided you stay you will stay in the market or else you might have to leave the business. So it is very important to keep the customer happy and content by understanding their requirement and needs.
To understand your customer better you need to go amid your customers to gain their feedback to develop data to research and work on. Basis the data market researchers and analyst help the company take a number of decisions correctly to grow their sales, maximize their revenues and reduce their expenditure, increasing and maximizing their profits.
Here are some articles that will help you to get more detail about the Marketing Research so just go through the link.