Marketing research is the search, collection, systematization and analysis of information about the market situation in order to make managerial decisions in the field of production and marketing of products. It should be clearly understood that without these activities effective work is impossible. In a commercial environment, you cannot act at random, but you need to be guided by verified and accurate information.
The essence of marketing research
Marketing research is an activity that involves the analysis of a market situation based on scientific methods. Only those factors that can affect the effectiveness of the sale of goods or the provision of services are relevant. These events set the following main goals:
- search - consist in the preliminary collection of information, as well as its filtering and sorting for further research;
- Descriptive - the definition of the essence of the problem, its structuring, as well as the identification of existing factors;
- casual - the presence of a connection between the identified problem and previously determined factors is checked;
- test - preliminary testing of the found mechanisms or ways to solve a particular marketing problem is carried out;
- predictive - suggest the prediction of the future situation in the market environment.
Marketing research is an activity with a specific goal, which is to solve a particular problem. At the same time, there are no clear schemes and standards that the organization should follow when solving such problems. These moments are determined independently, based on the needs and capabilities of the enterprise.
Types of Market Research
The following main marketing research can be distinguished:
- market research (involves the determination of its scale, geographical characteristics, the structure of supply and demand, as well as factors that affect the internal situation);
- sales study (ways and channels of product sales are determined, changes in indicators depending on the geographical sign, as well as the main factors of influence);
- marketing research of the goods (studying the properties of products both separately and in comparison with similar products of competing organizations, as well as determining the reaction of consumers to certain characteristics);
- the study of advertising policy (analysis of their own advertising events, as well as comparing them with the main actions of competitors, determining the latest means of positioning products on the market);
- analysis of economic indicators (studying the dynamics of sales volumes and net profit, as well as determining their interdependence and finding ways to improve indicators);
- marketing research of consumers - imply their quantitative and qualitative composition (gender, age, profession, marital status and other characteristics).
How to organize marketing research
The organization of marketing research is a crucial moment on which the success of the entire enterprise may depend. Many companies prefer to deal with this issue on their own. In this case, almost no additional costs are required. In addition, there is no risk of confidential data leakage. Nevertheless, there are negative aspects to this approach. Not always in the staff there are employees who have sufficient experience and knowledge to conduct quality marketing research. In addition, the personnel of the organization can not always approach this issue objectively.
Given the shortcomings of the previous option, it is legitimate to state that it is better to involve outside specialists in the organization of marketing research. They, as a rule, have extensive experience in this field and relevant qualifications. In addition, not being associated with this organization, they look at the situation absolutely objectively. Nevertheless, when attracting specialists from outside, you should be prepared for the fact that high-quality research is quite expensive. In addition, the marketer does not always know the specifics of the industry in which the manufacturer works. The most serious risk is that confidential information may leak and resell to competitors.
Principles of Marketing Research
High-quality marketing research is a guarantee of successful and profitable work of any enterprise. They are implemented on the basis of the following principles:
- regularity (a study of the market situation should be carried out in each reporting period, as well as in the event that an important managerial decision is coming regarding the production or marketing activities of the organization);
- consistency (before starting research work, it is necessary to break down the whole process into components that will be carried out in a clear sequence and inextricably interact with each other);
- complexity (high-quality marketing research should give answers to the whole wide list of questions that relate to a particular problem that is the subject of analysis);
- profitability (it is necessary to plan research activities in such a way that the costs of their implementation are minimal);
- efficiency (measures to conduct the study should be taken in a timely manner, immediately after a contentious issue arose);
- thoroughness (since measures to study the market are quite laborious and lengthy, it is worthwhile to conduct them very carefully and carefully so that there is no need to repeat them after identifying inaccuracies and shortcomings);
- accuracy (all calculations and conclusions should be made on the basis of reliable information by applying proven methods);
- objectivity (if the organization conducts market research on its own, then it should try to do it impartially, honestly recognizing all its shortcomings, oversights and shortcomings).
Stages of Marketing Research
Studying the situation on the market is a rather complicated and lengthy process. The stages of marketing research can be described as follows:
- formulation of the problem (posing a question that needs to be resolved in the course of these activities);
- preliminary planning (indicating the stages of the study, as well as preliminary deadlines for reporting for each of the individual items);
- coordination (all department heads, as well as the general director, should familiarize themselves with the plan, make their own adjustments, if necessary, and then approve the document with a general decision);
- collection of information (the study and search of data that relate to both the internal and external environment of the enterprise);
- analysis of information (a thorough study of the data obtained, their structuring and processing in accordance with the needs of the organization and the objectives of the study) ;
- economic calculations (financial indicators are evaluated both in real time and in the future);
- summarizing (formulating answers to the questions posed, as well as compiling a report and transmitting it to senior management).
The role of marketing research at the enterprise
The success of the enterprise is largely determined by how well and timely marketing research is carried out. Large companies often organize special departments for these purposes. The decision on the advisability of creating such a structural unit is made by management based on the needs of the enterprise.
It is worth noting that the marketing research department requires a lot of information for its activities. But to create too large a structure within one enterprise would not be economically feasible. That is why it is extremely important to establish links between different departments to transmit complete and reliable information. In this case, the marketing department should be completely exempted from any reporting other than that which directly relates to research. Otherwise, too much time and effort will be spent on side work to the detriment of the main purpose.
The marketing research department most often belongs to the top management of the company. It is necessary to ensure direct relations with the general management. But interaction with lower-level units is equally important, since it is required to receive timely and reliable information about their activities.
Speaking about the person who will manage this department, it is worth noting that it should have fundamental knowledge regarding such an issue as marketing research of the organization. In addition, the specialist must thoroughly know the organizational structure and features of the enterprise. In terms of status, the head of the marketing department should be equated with senior management, because it is the overall success that largely depends on the effectiveness of the work of his unit.
Objects of marketing research
The marketing research system is aimed at the following main objects:
- consumers of goods and services (their behavior, attitude to offers available on the market, as well as reaction to events undertaken by manufacturers);
- marketing research of services and goods for their compliance with the needs of customers, as well as identifying similarities and differences with similar products of competing companies;
- competition (it implies a study of the numerical composition, as well as the geographical spread of organizations with similar production areas).
It is worth noting that it is not necessary to conduct separate studies in each subject. In one analysis, several questions can be combined at once.
Research data
Marketing research data is divided into two main types - primary and secondary. Speaking about the first category, it is worth noting that we are talking about the information that will be directly used in the course of the analytical work. In addition, it is worth noting the fact that in some cases marketing research is limited only to the collection of primary data, which may be:
- quantitative - figures reflecting performance;
- qualitative - explain the mechanisms and causes of the occurrence of certain phenomena in economic activity.
Secondary data is not directly related to the subject of marketing research. Most often, this information has already been collected and processed for any other purposes, but in the course of the current study it can also be very useful. The main advantage of this type of information is its cheapness, because you do not need to make efforts and invest in order to get these facts. Well-known managers recommend first of all contacting secondary information. And only after identifying a lack of certain data, you can begin to collect primary information.
In order to start working with secondary information, the following conditions must be met:
- The first step is to determine the sources of data that can be located both inside the organization and outside it;
- Further, information is analyzed and sorted in order to select relevant information;
- at the last stage, a report is prepared that indicates the conclusions made during the analysis of the information.
Market Research: An Example
In order to successfully work and withstand competition, any enterprise must conduct market analysis. It is important that not only in the process of functioning, but also before starting a business, it is necessary to conduct marketing research. An example is the opening of a pizzeria.
Suppose you decide to start your own business. First you need to decide on the objectives of the study. This may be a study of the demand for a service, as well as an analysis of the competitive environment. Further, the goals should be detailed, during which a number of tasks are determined (for example, collecting and analyzing data, choosing a research methodology , etc.). It is worth noting that at the initial stage, the study can be exclusively descriptive. But, if you consider it appropriate, you can conduct additional economic calculations.
Now you have to put forward a hypothesis that will be confirmed or refuted during the analysis of primary and secondary information. For example, you think that in your locality this institution will be very popular, as the rest have become obsolete. The wording can be any, based on the current situation, but it should describe all the factors (both external and internal) that will attract people to your pizzeria.
The research plan will look like this:
- definition of a problem situation (in this case, it consists in the fact that there is some uncertainty regarding the feasibility of opening a pizzeria);
- further, the researcher should clearly identify the target audience, which will consist of potential customers of the institution;
- one of the most popular methods of marketing research is a survey, and therefore it is necessary to create a sample that will clearly reflect the target audience;
- conducting additional mathematical research, which includes comparing the costs of starting a business with the incomes determined on the basis of a preliminary survey.
The results of a marketing research should provide a clear answer to the question of whether to open a new pizzeria in this village. If an unambiguous judgment has not been achieved, it is worth resorting to the use of other well-known methods of information analysis.
conclusions
Marketing research is a comprehensive study of the market situation in order to determine the appropriateness of making a decision or to adjust their work according to the prevailing market conditions. During this process, it is necessary to collect and analyze information, and then draw certain conclusions.
Market research items can be very different. This is directly a product or service, and the market, and the consumer sector, and the competitive situation, and other factors. Also, within the framework of one analysis, several questions may be raised.
Starting marketing research, you need to clearly formulate the problem, which should be resolved based on its results. Next, an action plan is drawn up with an approximate indication of the time frame allocated for its implementation. After the document is agreed, you can begin to collect and analyze information. Following the results of the measures taken, top management is provided with reporting documentation.
The main point of the study is the collection and analysis of information. Experts recommend starting work by examining the data available in secondary sources. Only if there are any facts missing, it is advisable to work on their independent search. This will provide significant time and cost savings.