The Value of Marketing Research

Answer 1

All businesses want to understand their target market, or customer, and identify problems in reaching their target market. The target market can be other businesses, or it can be consumers. The best way to do that is to carry out marketing research. This is done in a variety of ways and can be very expensive, but it does help management avoid costly strategic decisions and satisfy its customers.

Marketing research is a statistical science. As such, its purpose is for a service or product provider to gather, organize, and analyze information about their customers in order to determine the best way to reach and satisfy them. A large company may hire a marketing research firm to create a survey to be completed by current customers, for example. The information gleaned from the survey is applied to the advertising and marketing efforts of the firm, or the marketing mix. The intention is to know how to reach their customer in the most effective and efficient ways possible. Marketing research can reveal the attitudes, ideas, and behaviors of a company's customers. It is in the understanding of these that a company can determine the most effective ways to reach their customers. It can reveal which combination of marketing is the most effective for the product or service provider while also identifying problems and opportunities.

A marketing research project is systematic, well planned, and objective. It must yield accurate results that reflect the current state of the market. After a marketing research project is completed, a company will use this data to avoid costly decisions and find solutions to problems. This data will guide management to make tactical and strategic decisions that will ultimately satisfy their target market's needs.

Marketing research is also an important element of a business plan. It must convince investors that the business idea is strong and will be worth investing in. It will also reveal any weaknesses, opportunities, and threats the potential business may face.

Marketing research is a very effective way of identifying problems for any business, and without it, businesses would not be able to solve those problems. As such, it holds a high value and is effective for small businesses and large corporations alike.