Marketing research is the search, collection, systematization and analysis of information about the situation on the market in order to make managerial decisions in the field of production and marketing of products. It should be clearly understood that effective work is impossible without these measures. In a commercial environment, one should not act at random, but should be guided by verified and accurate information.
Essence of marketing research
Marketing research is an activity that involves the analysis of the market situation based on scientific methods. Only those factors that can affect the effectiveness of the sale of goods or the provision of services matter. These activities have the following main goals:
- search engines - consist in the preliminary collection of information, as well as its filtering and sorting for further research;
- descriptive - the essence of the problem is determined, its structuring, as well as the identification of acting factors;
- casual - checks for a connection between the selectedproblem and previously identified factors;
- testing - a preliminary testing of the found mechanisms or ways to solve a particular marketing problem is carried out;
- forward-looking - imply foresight of the future situation in the market environment.
Marketing research is an activity that has a specific goal, which is to solve a particular problem. At the same time, there are no clear schemes and standards that an 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 researches can be distinguished:
- market research (implies the determination of its scale, geographical characteristics, the structure of supply and demand, as well as factors that affect the internal situation);
- sales study (the ways and channels of sales of products are determined, the change in indicators depending on the geographical feature, as well as the main factors of influence);
- marketing research of 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);
- study of advertising policy (analysis of own promotional activities, as well as comparing them with the main actions of competitors, determining the latest means of positioning goods on the market);
- analysis of economic indicators(studying the dynamics of sales and net profit, as well as determining their interdependence and finding ways to improve performance);
- marketing research of consumers - implies their quantitative and qualitative composition (gender, age, profession, marital status and other characteristics).
How to organize marketing research
Organization of marketing research is quite a crucial moment on which the success of the entire enterprise may depend. Many firms prefer to deal with this issue on their own. In this case, practically no additional costs are required. In addition, there is no risk of confidential data leakage. However, there are downsides to this approach as well. Not always in the state there are employees who have sufficient experience and knowledge to conduct high-quality marketing research. In addition, the staff of the organization can not always approach this issue objectively.
Given the shortcomings of the previous option, it is legitimate to say that it is better to involve third-party specialists in the organization of marketing research. As a rule, they have extensive experience in this field and relevant qualifications. In addition, not being associated with this organization, they have an absolutely objective view of the situation. However, when hiring outside experts, you must 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 operates. The most serious riskis that confidential information can be leaked and resold to competitors.
Marketing Research Principles
Qualitative marketing research is a guarantee of successful and profitable work of any enterprise. They are carried out on the basis of the following principles:
- regularity (research of the market situation should be carried out in each reporting period, as well as in the event that an important management decision regarding the production or marketing activities of the organization is coming);
- systematic (before starting research work, you need to break the whole process into components that will be performed in a clear sequence and inextricably interact with each other);
- complexity (qualitative marketing research should provide answers to the entire wide range of questions that relate to a particular problem that is the subject of analysis);
- economical (research activities should be planned in such a way that the costs of their implementation are minimal);
- promptness (measures to conduct research should be taken in a timely manner, immediately after a controversial issue arose);
- thoroughness (since market research activities are quite laborious and lengthy, it is worth conducting them very scrupulously and carefully so that there is no need to repeat them after identifying inaccuracies and shortcomings);
- accuracy (all calculations and conclusions must be made on the basis of reliable information byapplying proven methods);
- objectivity (if an organization conducts market research on its own, then it should try to do it impartially, honestly admitting 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:
- problem formulation (raising a question that needs to be resolved during the specified activities);
- preliminary planning (indicating the stages of the study, as well as the preliminary deadlines for reporting for each of the individual items);
- approval (all department heads, as well as the general director, must familiarize themselves with the plan, make their own adjustments, if necessary, and then approve the document by a common decision);
- collection of information (the study and search for data that relate to both the internal and external environment of the enterprise);
- analysis of information (careful 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 assessed 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 the marketing research department in the enterprise
Work successThe enterprise is largely determined by the quality and timeliness of marketing research. Large companies often organize special departments for these purposes. The decision on the advisability of creating such a structural unit is made by the 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 it would not be economically feasible to create too large a structure within one enterprise. That is why it is extremely important to establish links between various departments in order to transfer complete and reliable information. At the same time, the marketing department should be completely exempt from maintaining any reporting, except for that which directly relates to research. Otherwise, too much time and effort will be spent on side work at the expense of the main purpose.
The marketing research department is most often the top management of a firm. It is necessary to ensure direct links with the general management. But interaction with lower-level units is no less important, since it is required to receive timely and reliable information about their activities.
Speaking of the person who will lead this department, it is worth noting that he must have fundamental knowledge of such an issue as marketing research of the organization's activities. In addition, the specialist must thoroughly know the organizational structure andfeatures of the enterprise. According to its status, the head of the marketing department should be equated with top management, because the overall success largely depends on the efficiency of the work of his department.
Market Research Objects
The marketing research system focuses on the following main objects:
- consumers of goods and services (their behavior, attitude to the offers available on the market, as well as the reaction to the measures taken by the producers);
- Marketing research of services and goods to meet the needs of customers, as well as to identify similarities and differences with similar products of competing companies;
- competition (implies the study of the size and geographical distribution of organizations with similar production lines).
It is worth noting that it is not necessary to conduct separate studies for each subject. Several questions can be combined within one analysis.
Research data
Market 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 analytical work. In addition, it is worth noting the fact that in some cases marketing research is limited to just collecting primary data, which can be:
- quantitative - figures reflecting the results of activities;
- quality -explain the mechanisms and causes of the occurrence of certain phenomena in economic activity.
Secondary data is not directly related to the subject of market research. Most often, this information has already been collected and processed for some other purpose, 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 money to get these facts. Well-known managers recommend that the first thing to do is to turn to secondary information. And only after identifying a lack of certain data, you can start collecting primary information.
In order to start working with secondary information, the following conditions must be met:
- the first step is to identify data sources, which can be both inside and outside the organization;
- next, the information is analyzed and sorted in order to select relevant information;
- at the last stage, a report is prepared, which indicates the conclusions made during the analysis of the information.
Marketing research example
In order to work successfully 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 a marketing research. An example is opening a pizzeria.
Let's say you decide to start your own business. For starters, youshould determine 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, data collection and analysis, choice of research methodology, etc.). It should be noted that at the initial stage, the study can be exclusively descriptive. But, if you deem it appropriate, additional economic calculations can be made.
Now you must put forward a hypothesis, which 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, since the rest have already become obsolete. The wording can be anything, based on the current situation, but it should describe all the factors (both external and internal) that will attract people to your pizzeria.
The study plan will look like this:
- determining the problem situation (in this case, it is that there is some uncertainty in terms of the advisability of opening a pizzeria);
- next, the researcher must 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 businesswith earnings based on pre-survey.
The results of market research should be a clear answer to the question of whether it is worth opening a new pizzeria in this locality. If it was not possible to achieve an unambiguous judgment, 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 feasibility of making a particular decision or to adjust your work according to the current situation. During this process, it is necessary to collect and analyze information, and then draw certain conclusions.
The subjects of market research 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, several issues may be raised within a single analysis.
When starting a marketing research, you need to clearly articulate the problem that should be solved as a result of it. Next, an action plan is drawn up with an approximate indication of the time frame allotted for its implementation. After the document is approved, you can start collecting and analyzing information. Based on the results of the activities carried out, reporting documentation is submitted to the top management.
The main point of the research is the collection and analysis of information. Experts recommend starting work by studying the data available in secondary sources. Only in the event that any facts will be missing, it is advisable to carry out work on their independent search. This will provide significant time and cost savings.
