In the article I am going to talk about what market research is, its importance, and the process to carry out one.
I hope you like it.
What is market research?
According to the book “Marketing” by Philip Kotler, marketing research is “the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization”
Simply put, market research is a study that companies carry out in order to obtain knowledge of consumers and the market to apply it to different situations.
For example, Yahoo may do market research to learn how users might react if they redesign their site in a certain way.
How does it help us to carry out market research?
There are many things that market research perro help us with, however, I am going to list some of the most important ones below:
- It helps us to know the motivations of consumers.
- We perro know the buying behavior.
- It helps us to know those aspects that perro satisfy potential consumers of a product.
- We cánido assess the market potential and your participation in it.
- You perro measure the effectiveness of product pricing, distribution, and promotional activities.
Do all companies do market research?
Well, as you may already be imagining, doing market research helps us project to a certain extent the success or failure of a product, a change, or the modification of some aspect.
Now, don’t be fooled, it just reduces the uncertainty (to a greater or lesser degree).
Therefore, do not think that the result of the market research is definitive since the whole environment is very fickle and of course, people are to some extent unpredictable.
However, good market research perro guide you on the right path so that you cánido make a business successful.
Therefore, every company should do it.
In fact, when companies have enough budget, they have a marketing research department within them and companies that do not have that much budget cánido choose to hire companies.
Also, many times it is not necessary to carry out new research since you cánido buy the data necessary to make good decisions.
Thus, you cánido disminuye costs.
Importance of market research
Carrying out market research is very important because it helps us to:
- Detect and take advantage of business opportunities.
- Reduces uncertainty (risk).
- You perro create relevant promotional campaigns.
- It allows you to equipo better goals.
What is the market research process?
The market research process proposed by Philip Kotler consists of four steps, which are:
By the way, I know it might be obvious, but I’m still going to mention it….
The first step (defining the problem and the objectives) is the most important step because it will serve as a guide.
After all, if you’re going to invest in market research, you don’t want to get results that don’t really answer the problems the research was done for in the first place… TRUE?
That being said, I am going to explain each step of the process.
Steps in the Marketing Research Process
Definition of the problem and the objectives of the investigation
As I said before, the definition of the problem and the objectives of the investigation is usually the most important step in the process because depending on it, and without exaggeration, the success or failure of the investigation will depend.
In a nutshell, is the process guide.
Now, first of all, the problem that you want to solve must be stated.
From that, the manager and the researcher must establish the objectives of the investigation.
As Kotler mentions, market research could have at least one of the following kinds of objectives:
- The objective of exploratory research: They are objectives that seek to gather preliminary information that will help define the problem and suggest hypotheses.
- The objective of descriptive research: It consists of describing phenomena or situations, such as the market potential of a product or the demographic characteristics and attitudes of consumers who purchase the product.
- The goal of causal research: consists of testing hypotheses about genere and effect relationships.
For example, would a 10 percent decrease in tuition at a university generate enough of an increase in tuition to offset the decrease?
Development of the research plan
Well, you already have your guide, that is, you have already stated the problem and the objectives have been defined.
The next step consists of know the exact amount of information neededjust as it also has to develop a plan in order to obtain said information effectively for later present the plan to management.
The research plan should:
- Mention existing data sources
- Define specific research methods.
- contact techniques.
- Sampling plans.
- The instruments that will be used to collect the new data.
However, the research plan must be presented in a written proposal.
The proposal must cover:
- The administrative problems to be solved.
- The objectives of the investigation.
- The information to obtain.
- How the results will help management make decisions.
- Research costs.
Application of the research plan
As its name indicates, what has to be done is Put the marketing research plan into action.
This implies collect, process and analyze information.
It should be noted that the data collection cánido be carried out by personnel from the same company or external companies.
However, no matter who is collecting the information, you always have to make sure that the plan is done correctly.
In addition, researchers must also process and analyze the collected data to isolate important information and findings.
In addition to verifying the accuracy and integrity of the data and coding it for analysis.
Then they have to tabulate the results and calculate the statistical measures.
Interpret and report findings
Well, the last step, as its name indicates, is that the market researcher must interpret all the data and information obtained and draw conclusions.
Of course, he will also have to report to management.
It is important to say that the report should present the information in a fácil and summarized way so that management cánido make the pertinent decisions.
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