Marketing Research: Meaning & Importance

In the modern marketing activities, the marketing research is the systematic gathering, recording, and analysis of useful information about the market for planning and growth of the business activity. It acts as a tool for accurate decision making regarding to marketing of goods and services. It is the scientific method of solving the marketing problems like purchase, sales, sales promotion, advertisement, channels of distribution, etc.

The term ‘marketing research’ has been defined by many prominent scholars as under:

• Philip Kotler: “Marketing Research is the systematic problem analysis, model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services.”
• American Marketing Association: “The systematic gathering, recording and analysis of all facts about problems relating to the marketing of goods and services is called marketing research.”
• Tousley, Clark and Clark: “Marketing Research is the careful and objective study of product design, markets and such transfer activities as physical-distribution, warehousing, advertising and sales management.”
• Luck Wales and Taylor: “Marketing research may be defined as the application of scientific method to the solution of marketing problems.”
• Lorie and Roberts: “Marketing Research is a systematic attempt to get information useful in solving marketing problems (Making marketing decisions).”
• Prof Richard D. Crisp: “Marketing Research is the systematic objective and exhaustive search for and study of facts relevant to any problem in the field of marketing.”
• H. Delens: “Marketing Research is the systematic and continuing study and evaluation of all factors bearing on any business operation which involves transfer of goods from production to consumer.”

Importance of Marketing Research (MR)

The following points explain the need and importance of marketing research:

Reduces the risk involved in decision-making

It helps in reducing the risk involved in marketing decisions by providing current information and generalized knowledge about the marketing process.

Production of New Products

By marketing research, the marketing manager explores the possibility of selling a new product into the market and provides an opportunity to the business enterprise to start the production of new product and improve the existing products in order to satisfying the needs and wants of the consumers.

New Uses of Products

By marketing research, the marketing manager explore new uses of the products of the business enterprise and can widely publicize these alternative uses of its goods and services among the customers and can create new market and new demands for its products, which in turn help in increasing creditability and profitability of an enterprise.

Studies consumer behavior

The most important role of marketing research is to study the consumer behavior like habits, tastes, attitudes, likes, dislikes, etc. The study helps the enterprise in understanding its customers -Who are the customers? Why do they purchase the products of the enterprise? When and where do they purchase the products? For what purpose do they purchase the specific products? This information helps the enterprise in deciding its marketing policies, strategies and programme.

Selection of Channels of Distribution

With the help of marketing research, the marketing manager selects the best channel of distribution for the goods and services to meet the needs of the customers satisfactorily.

Evaluate Market Performance

MR helps in evaluating the effect of price, package, brand name, etc. on sales. It is used to find consumers’ reaction towards the company’s product. It is used to evaluate the inventory and pricing policies. It is also used to evaluate the effectiveness of advertising, sales promotion techniques, channels of distribution, etc.  Thus, it helps the enterprise to evaluate its marketing performance and to take steps to improve it.

Existence in competitive situation

MR collects and analyses the data in respect of goods and services offered by the competitors to the consumers. It studies their marketing policies and programmes and evaluates the effectiveness of their policies in the market. It helps the enterprise in deciding its marketing policies and programmes. It also helps in making necessary changes from time to time in these policies and programmes so that the enterprise may face the competition very successfully.