Dynamics and operations of marketing research

All successful organization carry out marketing research, it gives a company a better insight about the market which enables the company to discovers niches in the market and create important market segments. It doesn’t matter whether your business is internet or real market based, you will always need to do marketing research to stand a big chance of advancement.

Marketing research covers all those research activities which provide information to guide and direct marketing functions within organizations. It is different from market research which only provides information about actual and potential customers. Marketing research covers such areas as;

Product and development research
This is concerned with ensuring that organizations products satisfy consumer and legal requirements, stands the test of competition and have a competitive price.

Sales data collection
This is collected internally to enable the organization to monitor trends in sales volume. The data is presented in statistical summaries and can also be from intelligence reports about rivals, new products on the market and reasons for ordering and discontinuing orders.

Distribution research
This is undertaken to ensure that the organization products and services are available to purchasers at the right time and place. It also covers the performance of different sales and distribution outlets. This type of research also covers the risks involved in the distribution channels plus the product life cycle

Advertising effectiveness
Many companies spend a lot of money on advertisements and yet get little in return. Research in advertising effective therefore measures the reaction of consumers to advertising and the attitude of the consumers to the media through which the advert was made.

Trading environment analysis
This type of research covers the trading environment beyond the immediate markets of the company which may affect the daily activities of a particular company. One of the most common analysis methods is the PEST analysis with the initial letters standing for Political, Economic, Social and Technological environments.

Data sources
A company can use internal data for example customer database and details of purchases made. It can also opt for Public sources like Government statistics, Trade directories and off-the-shelf research which are carried out by different organizations for specific purposes. Firms can also employ commissioned research method where it uses its own staff to collect information about the market

Methods of data collection
There are mainly three methods of collecting primary data: experiment, observation, and survey
In the experiment method, the firm can use the field experiment method where a product is in experimented in the real market without announcing the change to see the reactions from the consumers or the laboratory experiment method where consumers are highly controlled in artificial situations which may not be real laboratories to observe results.

The observation method involves a close analysis of consumers behaviour and reaction toward a product in an on going market situation. In order to produce better results, a firm should carry out this method without the consumers being aware.
The survey method is normally used when it’s not possible to observe peoples behaviour, and when information about motivation and intension is required. It can be done through personal interview, postal survey, internet surveys and telephone interview.