In what ways can marketing research influence the development and implementation of marketing strategy?

In what ways can marketing research influence the development and implementation of marketing strategy?

Market research has become a prominent tool and collecting the data, information about various products that are used by the customers and the companies can improve on it. Data gathered to determine customer needs and wants and to provide feedback on company performance are used more effectively (How has the marketing concept changed marketing activities? 2007). Market research is actually what the people want and their needs. Once the research is done, the company can act accordingly and create the product according to the need of the customers and satisfy their needs.

For conducting a market research there are various problems which can be solved by market segmentation in which there is division of places and there are professionals been placed over there so that they can cover certain area and carry on the process which can be easier and wide area can be covered as well. When a company is starting the project totally new, it will be problematic as there won't be much idea about the market trends and what are the targets, which are to be achieved. Proper analysis should be done on the customer regarding their needs, wants and desires so that the company can have a proper survey and can help them in satisfying their needs (marketing strategy n.d.). There are the following ways that marketing research provides company to develop effective marketing strategy.

Concept Testing: Concept testing is the procedure of using quantitative methods and qualitative methods to evaluate consumer response to a product idea. In view of assigning the consumer, marketers will use the questionnaire or the telephone interview and other modes to test the new sales creativity whether have its market (Marketing Concept n.d.). For example, it's a new soft drink made from fruit juice but tastes like a cola and/or there could be a picture of the new product to test out new ideas.

Segmentation Research: Market segmentation is the identification of portions of the market that are different from one another. It allows the firm to better satisfy the needs of its potential customers (Market Segmentation 2010).Consumers can be segmented on 4 characteristics that are geographic, demographic, psychographic and behavioural. A good example of market segmentation is that used by health and leisure clubs in the UK today. For example, there is a clear distinction between daytime users who are often young mothers with children, and older retired people, and evening users who are people who like to keep fit after a busy day at work (Market Segmentation 2010).

Test Marketing: Before the product is introduced into a wider market, a small-scale product launch to consumers that used to determine the likely acceptance of the product. For example, each new menu item is put through a series of consumer taste tests before being added to the menu in Olive Garden Italian Restaurant (Gitman and McDaniel 2008). Another example is Coke testing a new Barq’s soft drink in Mississippi and Louisiana before a nationwide launch (marketing strategy n.d.).

Demand Estimation: To determine the approximate level of demand for the product and it is important technique for the demand forecasting. For instance, in early 2008, Mrs. Smyth’s Inc. initiated an empirical estimation of demand for its gourmet frozen fruit pies (Hirsc 2996). After they had known the quantity demanded of a certain product, they would make a decision for the launching.

A marketing strategy is the planning and deployment methods used to obtain customers for an organization (Marketing Concept n.d.). Market research can influence the development and implementation of marketing strategy by giving concrete feedback regarding your product or service .Company can use information from the study in marketing strategy to define the target market, choose the product or service image, position product, and price it appropriately. Marketing strategy involves segmenting and targeting which markets will be most beneficial to an organization and then marketing to those markets. It involves the planning of company positioning as well. In the end, marketing research can influence company to develop and construct an effective marketing strategy hence this will enhance the overall business performance of the company.

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