6. NEED AND IMPORTANCE OF MARKETING RESEARCH?
Marketing research facilitates decision-making in a number of marketing areas. The need and importance of marketing research explained as follow:
1. Marketing mix decisions: - Marketing research enables a firm to arrive at sound marketing mix decisions;
v Product Development: -A firm can design the right product depending on the needs and wants of the target customers. Due to marketing research, the company identifies the requirements of the customers and, therefore, it may be in a position to modify the existing products and designs new models/products to meet the customer requirements.
v Pricing Decisions: -Marketing research may facilitate the right pricing of products after analyze the competitors pricing.
v Promotion-mix decisions: - Marketing research may enable a firm to adopt effective promotion-mix (publicity, advertising, sales promotion, etc).
v Place Decisions: -A firm can also undertake appropriate place decisions. With reference to channel selection, compensation to channel intermediaries, etc.
2. Customer Satisfaction: -One of the main objectives of marketing is customer satisfaction. Marketing research facilitates customer satisfaction. Customer satisfaction takes place when product/services performance matches with customer expectations.
3. Competitive Advantage: -Research is conducted to find out the strength of the competitors. An attempt is made to find out why some consumers prefer competitors brands and also the special features that appeal to them. Accordingly, the company may incorporate and improve on such features in its products to gain competitive advantage.
4. Corporate Image: - The Company may be able to maintain and enhance corporate image in the minds of customers, dealers and other stakeholders. For instance;
v Customer research provides feedback on customers’ requirements and expectations. Accordingly, the company may make efforts to satisfy customer requirements.
v Dealer research provides feedback on dealers’ expectations and the incentives provided by the competitors. This information may be used design effective dealers’ incentives, which would motivate the dealers and therefore, the dealers may develop a good image of the firm.
5. Forecasting Sales: -A research can be conducted to judge whether there would be demand for a new product in the market or not. Also, the demand for existing products can be forecasted. Accordingly, sales programmes can be designed.
6. Expansion of markets: -Marketing research facilitates expansion of markets. With the help of marketing research inputs, the company can identify the markets that have good potential. Accordingly, the marketer can enter in new markets.
7. Dealer’s Relationship: -Marketing research enables a firm to maintain good relationship with the dealers. Through dealer’s research, the firm can get feedback from the dealers regarding their expectations. Accordingly, the firm may take appropriate decisions relating to dealer’s compensation and incentives, which will help to maintain good dealer’s relationship.
8. Brand Loyalty: -Marketing research may facilitate brand loyalty. Brand loyalty takes place when existing customers go for repeat purchase and also recommend the brand to others. Due to marketing research, the company not only produces customer-oriented products, but also comes up special schemes for loyal customers.