Discuss the importance of market research. 500 words
The importance of Market research:
Market research: This is known as MR and is an essential activity for taking many marketing and business decisions.
This is the process by which the relevant data or information is collected or gathered from several sources then the data is analysed to figure out the relevant information, insights and relationships among the various factors.
The sources from which these can be collected define it as primary or secondary. Primary is preferred when it is focused and secondary is preferred if it is broad level research.
At times the market research is done to get an idea of market influencing factors, then another advanced level research is done, or a pilot market study is done to get into the depth for the relationship of the factors and find useful insights.
Once these insights are ready the action is taken to impact marketing and define key business strategy. These are generally done during inititial phases of a product and service launch, but at the same time, this can also be done periodically for review of the company or product performance.
The end objective of any market research is to aid the decision making.
It can be for
· Go- no Go
· Market Share calibration and determining factors to be focused on
· Relationship and importance of factors, tht are already known to play key part
· Understanding the customers
· Product/Service mismatch
· Growth opportunity identification
How market research helps are
1. It provides key information that helps to take decision if the market has potential to grow
2. Should the company invest in that segment of market or identify other segments
3. It can determine the return on investment by determining what is the purchasing capability of the market and then determining optimal pricing strategy.
4. It helps benchmark competition, who is leading and due to which factors, and then helps improve areas accordingly to regain advantage
5. It is a cheaper way to know the potential of a market and helps take quick decisions.
6. It determines the Go to market strategy by determining the relevant factors
7. It provides future trends and growth estimations
So, market research is a must and an initial step for most of the marketing decision, then in case of doubt an advanced level of research is conducted to determine the exact scenario, then pilots are conducted, then strategy is developed.