Business companies, whether they are involved in manufacturing goods or providing services, need to understand the importance of market research which would give a fair idea about their territory of operations and scope of development. Let me first clarify the obvious difference between market research and market research. While market research is limited to only a market that is made up of your potential and actual buyers, market research goes in depth and beyond, covering all areas of marketing, including the market.
Identifying consumer needs and meeting them is vital to the emergence of a buyer’s market. Although companies manufacture goods that are competitive in terms of quality and price, it is the intermediaries, the linking factor between the manufacturer and the wholesaler or retailer, who have dominant control over distribution, affecting sales volumes. Extensive market research will help companies solve such intermediary and distribution problems to meet the needs of an ever-expanding market.
People’s preference is always changing, resulting in radical change of market conditions. To anticipate and comply with such changes, a business needs to analyze market conditions on a day-to-day basis. Also, improving product design helps a company retain its customer base. How does a company survive in the market without knowing the elementary changes that are taking place in its immediate environment? Price is one of the crucial factors that determine the acceptance rate of a product or range of products. Some of the major corporate firms maintain a separate department to collect relevant information on the pricing strategies of rival firms which helps them to get ahead in the market by quoting comparatively competitive prices. Such secret agendas are a necessity of the hour to outwit your rivals.
Another component of research planning is sales promotion and advertising campaigns. Sales promotion depends solely on the sales force and the marketing manager must play a key role in integrating his functions and highlighting his strengths. Sales people’s activities must be goal-oriented, and a mission without a goal is like traveling without knowing the destination. When we talk about ads, they are not only selling tangible products but also intangible things like morals, values, love, etc., through their ads. Therefore, it becomes even more important for advertisers to follow some built-in standards that do not affect the ethical values of the society in question and also must make sure that they do not make women a mere object of attraction.
Market research that is part of marketing research includes the study of the following:
- Market size
- market potential
- Market share
- Market segments
- Market trends and seasonal trends.
- Sales forecast
- consumer profile
- consumer preference
- Competitor analysis
- Measurement of price elasticity of demand and much more.
Such market research helps a company develop a comprehensive plan regarding effective training programs, sales force management, research and development programmers, and effective control mechanisms. It also facilitates efficient decision making and operational tasks of marketing management, thus contributing to customer satisfaction and organizational efficiency.