What does Marketing Research mean? Define Marketing Research; “The systematic, objective and exhaustive search for the study of the facts relevant to any problem in the field of marketing.” You’ll understand Marketing Research and their best topics – Objectives, Advantages, and Limitations. Marketing research may describe as a method of getting facts to use by the executive in formulating policies and plans.
The Concept of Marketing Research explains by its Objectives, Advantages, and Limitations.
It can also be defined as the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services. It’s a systematic search for information. It involves data collection, analysis, and interpretation. Research cannot draw decisions, but it helps marketers in the task of decision making.
A successful executive will never depend upon guesswork. He looks for more accurate information through research. The main idea of marketing research is to know more about consumers, dealers, and products. As the business grows, the distance between the manufacturer and consumers also widens.
The management depends upon marketing research as a tool in solving marketing problems. It helps in taking a fruitful and efficient decision as to the flow of goods and services in the hands of the customers.
What is Market Research?
Market research is an important element of the process of marketing research. They include a complete analysis of the market. Information regarding the nature, size, organization profitability of different markets, changes in markets and various factors-economic, social and political-affecting those changes are studied vigorously. The main purpose of market research is to know about the consumers and the markets of its products or services.
This article has given a solution to understanding; Advantages and Limitations of Marketing Research, or Objectives and Limitations of Marketing Research, or Objectives and Advantages of Marketing Research.
Objectives of Marketing Research:
Marketing research is undertaken for attaining the following objectives:
To Provide the Basis For Proper Planning:
Marketing and sales forecast research provides a sound basis for the formulation of all marketing plans, policies, programs, and procedures.
To Reduce Marketing Costs:
They provide ways and means to reduce marketing costs like selling, advertisement, and distribution, etc.
To Find Out New Markets for The Product:
Their aims at exploring new markets for the product and maintaining the existing ones.
To Determine the Proper Price Policy:
It is considered helpful in the formulation of proper price policy about the products.
To Study in Detail Likes and Dislikes of the Consumers:
It tries to find out what the consumers, (the men and women who constitute the market) think and want. It keeps us in touch with the consumers, minds and to study their likes and dislikes.
To Know The Market Competition:
They also aim at knowing the quantum of competition prevalent in the market about the product in question. The company may need reliable information about competitor’s moves and strategies which are of immense significance for further planning.
To Study The External Forces and Their Impact:
They provide valuable information by studying the impact of external forces on the organization. External forces may include conditions developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering the market and their impact on the company’s products. External forces may include conditions developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering the market and their impact on the company’s products.
Prof. Gilies has rightly pointed out that,
“The basic objective of marketing research is to supply management with information which will lead to a fuller understanding of the distribution habits and attitudes of present and potential buyers and users, and their reactions to products, packing, selling and advertising methods.”
Advantages of Marketing research:
The following advantages of marketing research below are:
Explains customer resistance:
Research is useful for finding out customer resistance to the company’s products. Remedial measures are also suggested by the researcher to deal with the situation. This makes the product and marketing policies agreeable to consumers.
Suggests sales promotion techniques
Promotion Research; enables a manufacturer to introduce appropriate sales promotion techniques, select the most convenient channel of distribution, suitable pricing policy for the products and provision of discounts and concessions to dealers. They facilitate sales promotion.
Offers guidance to marketing executives:
To research, offers information and guidance to marketing executives while framing marketing policies. Continuous research enables a company to face adverse marketing situation boldly. It acts as an insurance against possible changes in the market environment.
Facilitates the selection and training of the sales force:
It is useful for the selection and training of staff in the sales organization. It also suggests the incentives which should be offered for the motivation of employees concerned with marketing.
Promotes business activities:
They enable a business unit to grow its activities. It creates goodwill in the market and also enables a business unit to earn high profits through consumer-oriented marketing policies and programs.
Facilitates appraisal of marketing policies:
Research activities enable business executives to have an appraisal of the present marketing policies in the light of findings of research work. Suitable adjustments in the policies are also possible as per the suggestions made by the researchers.
Suggests new marketing opportunities:
Research, suggests new marketing opportunities and how they can be exploited fully. It identifies emerging market opportunities.
Facilitates inventory study:
It is useful for the evaluation of the company’s inventory policies and also for the introduction of more efficient ways of managing inventories including finished goods and raw material.
Provides marketing information:
Research provides information on various aspects of marketing. It suggests the relative strengths and weaknesses of the company. Based on such information, marketing executives find it easy to frame policies for the future period. MR provides information, guidance and alternative solutions to current marketing problems.
Provides information on product acceptance:
They help in knowing the probability of acceptance of the product in its present form. It is also useful for the introduction of modifications in the existing product line of a firm.
Creates a progressive outlook:
Research generates progressive and dynamic outlook throughout the business organization. It promotes systematic thinking and a sense of professionalization within the company. It also creates enthusiasm among marketing executives. This brings success and stability to the whole business unit.
Has wider social significance:
Research is of paramount importance from the social angle. It is how the ultimate consumer becomes king of the market place, with his desires, prejudice and every whim transmitted to the producer and distributor. In brief, MR has a wider scope of significance. It is useful to all parties involved in the process of marketing.
Limitations of Marketing Research:
Now let’s discuss above listed limitations of marketing research.
They solve many business-related problems. However, it cannot solve all business problems. It cannot solve problems related to consumer behavior, income and expenditure relationships, etc. Thus, its scope is limited.
Costly in the Market:
It is a costly affair. It needs a lot of money to conduct various market research activities. Huge funds are required to pay salaries, prepare questionnaires, conduct surveys, prepare reports, etc. It is not a viable choice for small businesses. It is suitable only for large companies who can afford its cost.
Provides suggestions and not solutions:
They provide data to the marketing manager. It guides and advises him. It also helps him to solve marketing problems. However, it does not solve the marketing problem. The marketing manager solves marketing problems. So, MR only provides suggestions. It does not provide solutions.
It is a lengthy and time-consuming process. This process involves many important steps. All these steps are crucial and not even a single step can be neglected or avoided. In other words, there are no short-cuts in MR. Generally, it takes at least three to six months to solve a marketing problem. Therefore, it cannot be used in urgent or emergencies.
Limited practical value:
They only an academic exercise. It is mainly based on a hypothetical approach. It gives theoretical solutions, it does not give real solutions to real-life problems. Its solutions look good on paper but are harder to implement in a real sense. Thus, it has limited practical value.
Can’t predict consumer behavior:
They collect data on consumer behavior. However, this data is not accurate because consumer behavior cannot be predicted. It keeps on changing according to the time and moods of the consumers. Consumer behavior is also very complex. It is influenced by social, religious, family, economic and other factors. It is very difficult to study these factors.
No accurate results:
It is not a physical science like physics, chemistry, biology, etc. They are also social science. It studies consumer behavior and marketing environment. These factors are very unpredictable. Therefore, it does not give accurate results. It gives results, but it cannot give 100% correct results.
Non-availability of technical staff:
It is done by researchers. The researchers must be highly qualified and experienced. They must also be hard-working, patient and honest. However, in India, it is very difficult to find good researchers. Generally, it is done by non-experienced and non-technical people. Therefore, MR becomes a costly, time-consuming and unreliable affair. So, its quality is also affected due to the non-availability of technical staff.
Can be misused:
Sometimes, marketing research is misused by the company. It is used to delay decisions, it is used to support the views of a particular individual. Also, used to grab power (managerial) in the company.
Non-availability of reliable data:
The quality of the marketing research report depends on the quality of the collected data. If the data is complete, up-to-date and reliable, then the MR report will also be reliable. However, in India, it is very difficult to get full, latest and trustworthy data. So, the non-availability of reliable data is also its limitation.
The resistance of marketing managers:
The marketing managers do not use the suggestions given in the marketing research report. Primarily, they feel that these suggestions are not practical. Secondly, they also feel that their importance will become less if they use these suggestions. There is a conflict between marketing managers and researchers.
They study a problem only from a particular angle. Also, it does not consider an overall view. There are many causes of a marketing problem. It does not study all causes. It only studies one or two causes.
For example, if there is a problem with falling sales. There are many causes for falling sales; like poor quality, high-price, competition, recession, consumer resistance, etc. It will only study two causes viz; low-quality and high price. It will not study other causes. So, it is not a reliable one.