In what ways can “marketing research” influence the development and
implementation of marketing strategy?
Market Research is a
systematic, objective collection and analysis of data about a particular target
market, competition, and environment. Marketing research plays a very important
role in a business (Definition of Market Research 2011). By conducting
marketing research, company can gather vital information which will reveal both
problems and opportunities. Then, company can make the most informed decisions
about its marketing strategies (Stein 2010) . There are several
ways that marketing research can influence the development and implementation
of marketing strategy.
First of all, marketing research can be used to identify opportunities, so as
well as to develop the effectiveness of marketing strategies. Marketing
research can help a firm better understand market opportunities ascertain the
potential for success for new products and determined a feasibility marketing
strategy (Beverland and Bretherton 2001) . For example, Procter
& Gamble (P&G) had conducted marketing research and revealed that the
most common symptom of cold was a headache and that majority of adults
typically take a pill to cure it. This disclosed an opportunity for a product
that can treat the headache as well as the other symptoms. The company thus
launched a new medicine product called Vicks Action 500.
It not only treated headache but also gave relief from blocked nose (P&G history n.d.) . Hence, marketing
research helps P&G identify an opportunity to development of a new product.
Furthermore, marketing
research can help company to segment market and so enable effective marketing strategy, leading to
competitive advantage in the marketplace (Katani 2007).
Marketers can use secondary
research [1] to determine the segments that the company should target in view
of factors such as demographic, usage rate and behavioural patterns (Sausner 2006) .For example, Dell
Computer might want to know a demographic breakdown of how many and what kinds
of consumers will purchase a new model in its personal computer line. Dell’s
marketing department uses marketing research to collect and analyse the report
data about potential consumer groups. Furthermore, it helps Dell’s marketing
department to identify quantitative and qualitative patterns in consumers
groups (McKay and
Lauren 2009) .
Eventually, marketing research aids Dell in identifying a niche and
implementing an efficient marketing strategy to increase its market share.
Next, problem
identification research is undertaken to help identify problems which are,
perhaps, not visible on the surface and yet exist. Research of this type
provides information about the marketing environment and helps diagnose a problem.
Also, the findings of problem solving research are used in making marketing
strategy which will help to solve specific marketing problems (Chapman 1989) . For example,
marketing research conducted for Office Max highlighted problems with
store layouts that customers found confusing and supplied executives with idea
on how to improve the layouts. Thus, Office Max was replacing grid like aisles
with a less-cluttered ‘racetrack’ layout that gave shoppers a clear showcased
inside a main aisle that loops inside each store to solve the problem (Pride
and O. C. 2010).
The purpose of marketing research is to inform an organisation about
customers’ needs. Marketing research data will increase marketer ability to create
an effective marketing strategy to respond to customer needs and improve organisation
performance (Joel N 1980) .
For example, JC Penney conducted research involved asking 900 women about their
casual clothes preferences and their clothing needs. The research helped the
company recognise that shoppers were frustrated with the choices and quality of
clothing available in their price range. Armed with this information, Penny
recognised the customers’ need and
launched two new product lines of moderately price, quality casual
women’s clothing, including design by a famous designer called Nicole Miller.
As a result, JC penny sales increased to about 7.6% (Joan G 1984) .
To concluded, all of
the above are the ways that can help company to implement marketing strategy
effectively. Thus, efficient marketing strategy will help companies to boost up
their profit and perform better.
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Appendix 1
Types of Market Research
Market research methods fall into two basic categories: primary and secondary. Your research might involve one or both, depending on your company’s needs.
Market research methods fall into two basic categories: primary and secondary. Your research might involve one or both, depending on your company’s needs.
Primary research involves collecting original data about the preferences, buying habits, opinions, and attitudes of current or prospective customers. This data can be gathered in focus groups, surveys, and field tests. Secondary research is based on existing data from reference books, magazines and newspapers, industry publications, chambers of commerce, government agencies, or trade associations. It yields information about industry sales trends and growth rates, demographic profiles, and regional business statistics.
The bulk of your secondary research now is available on the Internet thanks to the proliferation of sites that provide or sell data about individuals and companies and because most publications now are available online.
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